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.