Operation "Halt"
Prepare yourself for the shock of all shocks. Gaw Miners has shutdown its Cloud Operations "indefinitely". Yeah, we weren't very surprised either, but it adds for dramatic effect.
Users who log into Zencloud now have a big fat red "Cloud mining disabled" right next to BTC amount mined, which will be stagnant for the foreseeable future. GAW offers this little gem [explanation]:
As a result of unstable market conditions, diminishing bitcoin value and the unbalanced-cost of maintenance and power, GAW and Zen Cloud mining operations have been indefinitely put on hold, effective immediately. At this time, we can no longer support mining services that place our customers' value and mining efforts at risk. As the bitcoin value and market evolve, GAW and Zen Cloud mining operations will strategically adjust to meet those market conditions.
Well, there you have it folks. Long thought an imploding Ponzi scheme, GAW Miners hit the scene offering higher payouts, than any other cloud service could possibly match, or basic mathematics could possibly explain. So it was no wonder why people flocks to purchase the mysterious "hashlets" which were first introduced as "new technology", and equally no wonder why skeptics quickly called BS, and labeled the "Hashlets" an intricate Ponzi scheme.
CEO Josh Garza, has offered various explanations claiming the service was not a Ponzi scheme, but one has to wonder if there is merit to the claim, as this very occurrence has been predicted for some time now.
Troubled Waters
GAW Miners, who blasted on to the scene about a year ago, quickly hitting revenues in the 60 to 80 Million Dollar range, seems to be running into a series issues. Recently releasing its own altcoin, called PayCoin, which quickly fell flat, outraging customers as it's forecast $20 per coin quickly dissipated into less than 1/4 of the estimated value, the sudden shutdown of it's Cloud mining operations has all but started a riot among its customer base.
If this wasn't bad enough, now the SEC has reportedly set their sites on the troubled company, according to CoinFire, which on Tuesday cited “1,000 pages of a [leaked] investigation file." This could very much explain the sudden halt of operations at the GAW Miners camp, even if just to do an internal audit and make sure all systems are anti-ponzi, because if there's anything out of line, rest assured the SEC is going to dig it up, and any kind of Ponzi, is investment fraud, and could spell disaster for GAW Miners, its customers, and Mr. Garza.
UPDATE: 02-05-2015 - Since this article published, GAW attorneys have confirmed that the SEC is indeed investigating. Garza can't possibly be remotely surprised about this, if he is, then he's an idiot. Actually he is an idiot either way, and there is no win here. It will however, be interesting.
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