Kodak bitcoin mining scam collapses

The KodakCoin and Kodak KashMiner saga!

For those who may not be aware, Kodak, the iconic photography company, announced in January 2018 that it was launching its own cryptocurrency, KodakCoin, and a mining device called the Kodak KashMiner. The company claimed that the cryptocurrency would be used to facilitate transactions for photographers and artists, and that the mining device would allow users to mine the cryptocurrency at home.

However, the project was met with widespread skepticism and criticism from the cryptocurrency and tech communities. Many experts pointed out that the project was likely a scam, citing the following reasons:

  1. Lack of transparency: Kodak failed to provide clear information about the project's goals, mechanics, and financials.
  2. Unproven technology: The mining device was untested and unproven, and there was no evidence that it could actually mine the cryptocurrency.
  3. High fees: The mining device was reportedly very expensive, with prices ranging from $8,000 to $12,000.
  4. No clear use case: The project failed to demonstrate a clear use case for the cryptocurrency, making it difficult to understand its value proposition.

Despite the warnings, many people invested in the project, and the company raised millions of dollars in funding. However, in January 2019, the company announced that it was shutting down the mining device and refunding investors.

In June 2019, the US Securities and Exchange Commission (SEC) charged Kodak and its CEO, Jeff Clarke, with securities fraud, alleging that the company had made false and misleading statements about the project. The SEC also charged several other individuals and entities involved in the project.

In the end, the KodakCoin and Kodak KashMiner project was a massive failure, and many investors lost significant amounts of money. The incident serves as a cautionary tale about the importance of due diligence and skepticism when investing in new and unproven projects, especially those that promise unusually high returns.