I&#x27;ve followed this one with amusement for a while. Basically they tried to be legitimate in a sense, until that turned out to be quite expensive, at some point they tried again to be legitimate but again with the same result. There&#x27;s lots of history you can read up about in the Bitcointalk thread (1500 pages of it), including details like the CEO causing tens of thousands of dollars of damage to a rental property by amongst other things, running a mining operation in his basement.<p>At one point they made a large mining facility in the US, with contracts with the power company to use a certain amount of service. They paid in the millions of dollars for mining hardware and power installation for their own small substation, they then ran it for a few months until the power company cut them off for never paying the power bill which amounted to $350,000 USD[1]. This was responded to as &quot;a billing dispute&quot; [2].<p>From my own calculations this farm was never able to be profitable (it always used more in power than it mined), and never covered even a small portion of the hashrate they were supposed to own. At one point they posted a video from within it, filmed without sound and in such a way as to hide the fact that there was only one rack of miners.[3] Many promotional photos were posted of their &quot;farm&quot;, but none of the hardware is actually plugged in for these photos, so it was probably reboxed and shipped to customers afterwards.[4]<p>The part not mentioned in the SEC complaint is where the CEO flees the US to Dubai, one of the people in Dubai he defrauded of $200,000 from wins a legal battle against him, and the US Government bails him back to the US.<p>[1]: <a href="http:&#x2F;&#x2F;www.scribd.com&#x2F;doc&#x2F;261395976&#x2F;Mississippi-Power-vs-GAW#scribd" rel="nofollow">http:&#x2F;&#x2F;www.scribd.com&#x2F;doc&#x2F;261395976&#x2F;Mississippi-Power-vs-GAW...</a><p>[2]: <a href="https:&#x2F;&#x2F;www.cryptocoinsnews.com&#x2F;wp-content&#x2F;uploads&#x2F;2015&#x2F;04&#x2F;13-gaw.png" rel="nofollow">https:&#x2F;&#x2F;www.cryptocoinsnews.com&#x2F;wp-content&#x2F;uploads&#x2F;2015&#x2F;04&#x2F;1...</a><p>[3]: <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=2ZpZdeJNSV0" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=2ZpZdeJNSV0</a><p>[4]: <a href="https:&#x2F;&#x2F;i.imgur.com&#x2F;9YTH5mB.jpg" rel="nofollow">https:&#x2F;&#x2F;i.imgur.com&#x2F;9YTH5mB.jpg</a>