PB Mining Ponzi Scheme Review

By cloudminer on February 3, 2014

Good

  • Small minimum investment
  • They have been around for over a year

Bad

  • They are a scam
  • They pay out a fraction of expected earnings
  • No proof of mining
  • No selectable mining pool
  • Non-transferable mining contracts
  • Sparse dashboard
Trust - 1
Price - 1
Maintenance Fee - 1
Dashboard - 1
Payment Reliability - 1
Signup Bonus / Referral - 1
1

Scam

History

PBMining was one of the most established cloud mining companies, as they have been paying out for over a year. They state on their website and in various forums that they have “an established eBay account. We have 100% feedback rating on our sales and have grown a very positive reputation in the Bitcoin community!” True, they have been an eBay member since May 9, 2012, but they also haven’t sold anything on eBay over the past 6 months.

PBMining is extremely active on BitcoinTalk, where they have become a senior member with 690 posts in a little less than a year. They have also received some media attention, specifically in a CoinTelegraph interview with “Jeremy Biggs”, owner of PB Mining on Aug. 6th 2014.  In the article, Mr. Biggs claimed he will “continue to allow time itself to run its course of proving our trustworthiness in this market.” In early November 2014 they ran a promotion through BitcoinTalk to sign up new members, which appeared to be successful.  On Nov. 30th, angry customers began posting that their payouts were significantly less than expected (approx. 15%) which could signify financial insolvency. Even worse, they reduced payments to 1/10th of expected payouts during the week of Dec. 14. During the subsequent weeks, it appears users only received 1/100th of their expected earnings.  The latest twist is that bitcointalk user MrTeal was able to uncover the true identity of the owner, Jason Boyko.  On December 9th, PBMining created a new thread on Bitcointalk titled “Recovery program beginning in January for PB Mining customers” which never really materialized for users (including myself).

Trust Rating

I see three main downsides to PB Mining. Their lack of corporate transparency, non-transferable contracts, and proprietary mining pool all lead me to distrust PB Mining as a customer. Once the PB ponzi scheme began to collapse, payments were reduced to one tenth of the expected amount, and then further reduced to one one hundredth of the expected amount.  Aside from empty promises to repay, we really haven’t seen any attempt by Jason Boyko or PB Mining to make reparations to customers.

There were other red flags associated with PBMining of course, such as the fact that they don’t list a corporate address, data center address, or any real names of their founders or employees. All I could find relating to the owner is the CoinTelegraph article about Jeremy Biggs mentioned above. Now that bitcointalk members have uncovered Jason Boyko as the owner, it is only a matter of time before a class action lawsuit gets underway.  On top of all of the above, PB Mining never once proved that their operation was backed with physical hardware in any way. It appears likely that there was never any mining taking place at PB. Overall, PB Mining is the single shadiest company in the cloud mining space.

Price Rating

PB Mining offers up the second least expensive mining contracts in the industry – and these are five year contracts. Their cloud mining contracts are actually price competitive with some of the most advanced Bitcoin mining hardware on the market. Contracts are available in 1 GHS increments, starting at 25 GHS and up to 30TH/S, all at the same rate (currently 0.0013BTC). In fact, PB Mining appears to have the second highest return on investment (ROI) in the space. That is, until you realize they are a ponzi scheme, that is in the final stages of collapse.

Maintenance Fee Rating

PB Mining offers zero maintenance and electricity fees, which is a rare find among cloud mining companies. Without any costs affecting the Bitcoin you’re generating, you will achieve an extremely high ROI – at least theoretically. You really need to ask yourself how they can remain profitable over 5 years if they are charging zero maintenance fees? It seems that they can eliminate maintenance fees by not actually mining for Bitcoin!

Dashboard Rating

While some would say dashboards are purely aesthetics, I believe usability of a site is important. While PBMining’s dashboard is extremely sparse, it is usable. You can view a list of your existing contracts, your earnings associated with each contract, and account balance You can also view statistics comparing you to other users, of which there are many. So despite the minimalistic approach to visual design, PB’s dashboard works. You can check out some screenshots of PB Mining’s dashboard here.

Payment Reliability Rating

Payments are made weekly – on Sunday – and have been paid on time as of the time I wrote this review on PB Mining. For October and November, payments seemed consistent with the amount of Bitcoin you would expect to be generated with equivalent mining hardware. Then in December, payments became fractional, so users received 1/10th and eventually 1/100th of expected earnings. They have become completely unreliable at this point, and will likely cease paying out altogether shortly.  Their “recovery program” seems as if its sole purpose was to repay the owner, Jason Boyko.

PB Mining Signup and Referral Bonus

PB Mining offers a very generous referral bonus, which amounts to 10% of contracts purchased by a customer you refer. However, since they are no longer paying out, their referral bonus has become completely worthless.

Conclusion

STAY AWAY FROM THE PB MINING PONZI SCHEME! Please do yourself a favor, and look at a company with a lower risk profile, such as Bit-X HashNest or Genesis Mining. They will all give you a much better and safer return on investment.

2.7
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