MoneyBeat, a blog hosted by the Wall St Journal, has published a second article discussing accusations levied against Josh Garza's GAW Miners. Michael J Casey, who authored the piece, concludes that his research is unlikely to placate the "highly vocal critics" of GAW Miners. Garza appears to be quite happy with the article, proudly tweeting it to his followers via @gawceo.
Unfortunately for him, the article only serves to confirm what critics have suspected all along; that GAW Miners are a scam and that Josh Garza is operating a ponzi scheme.
After a conversation with one of our customers, I decided that there is more I can do to create more transparency without giving up any competitive information. So I am creating this thread to ask Bitmain to confirm some of our orders.
Bitmain, can you please confirm that GAW Miners most recent order was over 5 peta hash?
Dear Josh and Teams!
Thank you for your purchase. We hope you’ll enjoy our hard-working ants! Oh yes,
it was over 5PH/s of ants and they are marching your way to join GAWSOME”
At the time, it was not known if this was the first order GAW Miners had placed with Bitmain. Bitmain have confirmed the existence of that order in the article published by Michael J Casey but they clearly state GAW have only made a single order. From the MoneyBeat article:
Separately, Jihan Wu, the CEO of bitcoin mining equipment maker Bitmain, told us GAW was “a very important participant” in the industry and confirmed delivery of a single Bitmain order to GAW worth 5 petahashes per second. (For context, the overall mining power of the bitcoin network is currently 288 petahashes, or 288,000 trillion hashes per second.) Mr. Garza says Bitmain is just one of GAW’s major suppliers.
This makes clear that the post on the Bitcoin Talk forum does not confirm GAW Miners "most recent order" or "some of our orders" but the first and only order. Confirmation of this order also conflicts with claims Garza made in a Q&A held on the 1st of October 2014.
Question – What kind of hardware do your scrypt data centres use. For example, which chips, manufacturers, etc
Josh Garza – What we can talk about is everybody, so, we quite literally use every major manufacturer in the world, so, bitmain, we're actually in discussions right now with bitfury, *inaudible*, I mean, every single company. We are in the process of beginning to build our own chip, we do have hardware that is not publicly available that created economies of scale for us, kinda all over the place, probably a less glamorous answer than you were looking for but we actually are putting the finishing touches on one of our biggest data centres yet in the next couple of weeks, I actually spoke to someone a few days ago who saw it and he's never seen that many miners and flash computers in one place.
Ignoring the fact that Bitmain is not shipping scrypt ASICs until later this month and that their SHA256 ASICs cannot be used to mine scrypt based altcoins despite Garza's claims of doing so, how is it possible that Garza was already using Bitmain hardware in his data centres if confirmation of the first order and its shipment occurred at a later date?
Even if one chooses to accept Garza's mixed up timeline and version of the events in regards to the Bitmain order, MoneyBeat have still confirmed for us that GAW Miners is a ponzi scheme. From the article:
In investigating these claims, BitBeat viewed a bitcoin address at Blockchain.info that was cryptographically proven to belong to GAW and in which almost 28,000 bitcoins — currently worth more than $10 million – have flowed from mining operations over the past two months. We were told this was just one of a number GAW mining addresses. The act of Garza signing an address which confirms his possession of almost 28,000 bitcoin does not disprove the accusations of him running a ponzi scheme but in fact, confirms it. How stupid can you be to deny you run a ponzi and then sign the address where the ponzi funds are held? If the 28K BTC that he holds are GAW's profits, it would figure that customers have received mining payouts of a far greater number, which is not possible given the current players in the mining industry. If this amount of bitcoin are not the profits but in fact the coins that customers have mined or more likely, purchased by Garza using the funds that he has scammed, why is it that Garza and not the customers are capable of signing an address with 28K bitcoin? I can tell you why it is possible. It's because GAW Miners is a ponzi and like all ponzi schemes, the guy at the top holds all the money.2
Bolding by Qntra. ↩
Even if Josh attempts to delete his posts/video/content, as he did when shopping around for a tummy tuck and titty job for his wife Jessica Garza, all the content is fukken saved! ↩