Earlier this year, one could see the market brimming with Bitcoin mining machines that were labeled with the Kodak brand name, all of them with lucrative offers for anyone wishing to dig around for some tokens using the equipment. However, all of it has turned out to be a scam which has been in the making for the past several months. This pushed the Securities and Exchange Commission (SEC) to intrude into Kodak’s scheme with the cryptocurrency mining equipments.
The Bitcoin mining equipments, named Kodak KashMiner, was first made public on the company’s official stand in Las Vegas at a tech event. The offers these machines touted prompted several critics to evaluate the entire deal after it caught their eye, who finally concluded that something might be off. The company backing the Kodak KashMiner, Spotlite USA maintains that the machines were meant to be rented.
The company had made lucrative promises of earnings of an estimated $375 USD a month, but this was only provided whoever was renting the computer paid $3400 USD in advance.
Kodak has now tried to evade the issue by suggesting that they never licensed the Kodak KashMiner.
In order to further lure more and more investors into purchasing the unlicensed equipment, Spotlite explained that they had already released 80 such devices into the market and they were already being used to mine Bitcoin. Spotlite CEO, Halston Mikail had maintained the plans for the installation of “hundreds of the devices” in Rochester, New York at the Kodak headquarters, to make the best use of the cheap electricity provided by their on-site power plant. These later turned out to be false claims, with Kodak explaining that no such devices had been installed at their headquarters.
“Halston Mikail said the US Securities and Exchange Commission (SEC) had prevented the scheme from going ahead. The company would instead run its mining operation privately with equipment installed in Iceland, instead of renting capacity to consumers,” – BBC reports.
With the SEC blocking the Kodak-branded crypto-mining scheme, it can definitely be assumed that there might be many more minor schemes operating right now that have yet to attract the eyes of the regulators.