TerraHash shutting down, only partially refunding customers

TerraHash, a manufacturer of ASIC chip miners, announced that it has gone out of business. Legal problems still hover over the company, though.

7 Total views
0 Total shares
TerraHash shutting down, only partially refunding customers

TerraHash, a manufacturer of ASIC chip miners, announced that it has gone out of business. Legal problems still hover over the company, though.

The company’s problems are manifold, according to an announcement on Bitcointalk. First, its Klondike project failed. Second, its bank shut down the company accounts. Finally, shipment delays sparked an overwhelming number of refund requests, which the company does not seem to have the money to honor because of outstanding debts to PayPal.

TerraHash refunds are now pending a refund request from the company itself to Yifu Guo, founder of Avalon ASIC and would-be provider of TerraHash’s mining chips.

With that refund, TerraHash would be able to refund about 50% of all orders. Clearing up money from its closed accounts would allow for another 5% of refunds, and the company’s announcement said pro-rated payments to customers would go out as money became available.

TerraHash had been offering hosted mining, with 2 PH of mining capacity, to go online in November, pending negotiations with ASIC chip providers.

Since then, the company seems to have spent much of its money, leaving customers fuming. At least two customers have begun legal action against TerraHash’s management.

TerraHash actually changed the company’s return policy in early July by stating that all orders were final, but refunds could be considered on a case-by-case basis.

At the time of writing, the company’s website is still up, and it is still registered as an active company in the state of California (entity number C3566232).

×

Hottest Bitcoin News Daily

For updates and exclusive offers, enter your e-mail below.