There’s a mining contract scheme people are discussing and making the rounds on the web called “Mining City” or “Bitcoin Vault.” The Philippines SEC recently put out a warning against the operation and the alleged masterminds behind the project.
One thing is for sure, there’s been a number of crypto Ponzi operations over the years, and they typically attract a lot of users before they crumble. However, as the story goes with any pyramid scheme when the project crashes, only the top leaders make off with all the money.
One particular pyramid scheme called “Mining City” is a cloud mining operation that pays users in a token called Bitcoin Vault or BTCV. Mining City claims to have an offsite datacenter filled with mining rigs and the project sells cloud mining contracts to investors.
Mining City sells cloud mining contracts in packages of multi-year terms and depending on the hashrate purchased packages can run up to over $12,000+ a contract. Those shilling the project on crypto forums and social media platforms promise investors $100 a day in returns paid out in BTCV.
The Mining City and BTCV schemes were purportedly invoked by the project’s CEO Gregory Rogowski, Philippines group leader Anthony Aguilar, and Jhon Rey Grey. BTCV’s value is listed on the coin market cap aggregator, Coingecko and the token touched an all-time high of $489 on August 1, 2020. Mining City’s token is down -85.27% since then and now trades for $72 per BTCV.
There’s a number of reports and studies that show the Mining City project is a pyramid scheme and the findings indicate a myriad of red flags. On September 10, 2020, the Philippines Securities and Exchange Commission (SEC) published a warning
