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Case Status:    DISMISSED    
On or around 06/04/2018 (Notice of voluntarily dismissal)

Filing Date: May 25, 2018

The Complaint alleges that Defendants scammed hundreds of Californians and thousands of Americans out of millions of dollars through an online scam called Mining Max, taking advantage of the increased attention, interest and success of cryptocurrencies, legitimate companies and technology to convince Plaintiff and the Class that they would make money by investing in Mining Max and “mining” a highly profitable and well-known cryptocurrency, Ethereum.

The Complaint further alleges that Mining Max was both a pyramid scheme and a Ponzi scheme; that is, it relied on new money from new users, who were in turn expected to get more new users to produce more new money, while not actually engaging in any real activity that would produce income, profits or benefit to investors. In its scheme, Mining Max marketed “mining rigs” to its consumers, like Plaintiff. It advertised that the “mining rigs,” which were computer-like machines, would produce cashable, sellable, tradable cryptocurrency.

The consumer did not ever see his or her “mining rig,” because those machines were supposedly stored and “operated” in a facility in South Korea. Consumers received a “Certificate of Purchase,” which would be good for two years before the consumer would have the option to purchase a new “mining rig.”

Mining Max promised a return of $800 to $1,200 per month per machine based on the current rate of growth, explaining that you “make your money back within 3-4 months” so you can reap profits for the next 20 months.

To keep the new purchases of “mining rigs” coming, Mining Max promoted an “investment” platform and showered its top investors with money and gifts for recruiting new customers. Ultimately, when the mining activities of Mining
Max failed to yield the promised returns, Mining Max halted its operation, took all of Plaintiff and the Class’s money, and left them with nothing.

Plaintiff and the Class were damaged. Plaintiff seeks monetary damages for these losses, in an amount to be
determined at trial. Plaintiff also seeks injunctive relief, in the form of: (1) specific enforcement and/or rescission of the contract between Mining Max and Plaintiff and the Class; (2) a return of all money and/or cryptocurrencies given to Mining Max by Plaintiff and the Class; (3) disgorgement of all monies earned by Defendants due to their conduct; and/or (4) an immediate order enjoining Mining Max and its owners, members and Board of Directors from transferring, selling, spending or otherwise dissipating any assets so that Plaintiff and the Class can recover the money owed to them.

On June 4, 2018, Plaintiff voluntarily dismissed this case.


Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States


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Company Market:
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About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 18-CV-04557
JUDGE: Hon. S. James Otero
DATE FILED: 05/25/2018
CLASS PERIOD END: 12/19/2017
  1. Abigale Rhodes Green Injury Law
  2. Johnson Firm
  3. Jones Ward PLC
  4. Law Office of Francis J. Flynn, Jr.
No Document Title Filing Date
—Reference Complaint Complaint Related Data is not available
—Related District Court Filings Data is not available