Former GAW Manager: $8 Million ZenMiner Investment ‘A Total Lie’

A former GAW Miners executive has claimed that a previously announced $8m investment in the cloud mining firm ZenMiner never took place.

Mar 6, 2015 at 9:45 p.m. UTC
Updated Sep 11, 2021 at 11:35 a.m. UTC

zenMiner

A former employee of GAW Miners is claiming that the company's previously announced $8m investment in the cloud mining firm ZenMiner never took place.

, former ZenMiner chief Eric Capuano set forth the allegation, the latest in a string of controversies affecting the mining firm. Capuano is among a number of individuals to depart the company earlier this year.

While rumors that the ZenMiner purchase never occurred have circulated for months, this is the first time a former GAW staff member has stated the $8m investment was a fabrication. GAW said in August that it had acquired a controlling stake in the firm, with ZenMiner ostensibly being absorbed within the broader GAW infrastructure.

Capuano noted in the post:

“The '$8m deal for the purchase of ZenMiner' that allegedly occurred between myself and Josh was a total lie. I've never owned any of the many companies operated by Josh.”

Following the publication of this story, GAW Miners issued the following statement in regards to the allegations made by Capuano:

"It is our practice to accurately value assets and equity in the event of a corporate transfer or purchase. As a general rule as practiced by most privately-held companies, GAW does not disclose its equity structure or the details of transactions to the general public or staff, nor is the company required to. Its unfortunate this misunderstanding took place."

'Grand scheme'

Capuano went on to say the press releases that included information about an $8m investment were published without his consent or knowledge at the time.

He declined to comment further, indicating that he may be cooperating with law enforcement officials believed to be investigating the company.

“Unfortunately, I am not at liberty to discuss all of my efforts in doing the right thing, and a quick Google search for 'GAW Miners Investigation' should answer why,” he wrote.

He also cited ‘legal threats’ as another factor in his disclosures, noting that he was likely to receive additional legal pressure following the post. GAW has issued a number of cease and desist letters in the past, including notices sent to former customers.

“Keep fighting the good fight guys, those of us that are still bound to NDAs are constantly having legal threats flung our way. I'll likely get another for making this post,” he wrote.

Revelations continue

The claim comes days after thousands of internal emails were leaked from what appeared to be a publicly available Google Group.

GAW told CoinDesk that it could not confirm the veracity of those emails, announcing earlier this week that the company had been the victim of a concerted hacking attempt.

Customer withdrawals were suspended on both the ZenMiner and PayBase platforms last month.

also suggest that GAW may be facing a multi-agency investigation by the US government for potential securities and money laundering violations.

CoinDesk will continue to monitor this developing story.

Lie detector image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Let Terra Die

Do Kwon's proposal to fork the failed stablecoin network isn't what LUNA holders want, nor will it help them.

Do Kwon's proposal to fork the failed stablecoin network isn't what LUNA holders want, nor will it help them.

2
Block Sees Bitcoin Disrupting Payments Networks, Expects Self-Custody to Grow

Block executives spoke during the company’s annual investor day on Wednesday.

Block executives spoke during the company’s annual investor day on Wednesday.

3
Bitcoin Miner Argo Blockchain Emerged Unscathed From Its UST Stake

The company said it was able to sell its minimal UST stake for around 93 cents per token before the price completely collapsed.

The company said it was able to sell its minimal UST stake for around 93 cents per token before the price completely collapsed.

4
Binance Seeking ‘Ideal Point’ for India Launch

Increased hiring, active consultations and monitoring of the regulatory environment by the exchange suggest Indian operations may soon be underway.

Increased hiring, active consultations and monitoring of the regulatory environment by the exchange suggest Indian operations may soon be underway.