The world’s largest cryptocurrency mining equipment manufacturer Bitmain has been accused of providing ”seriously inadequate” hardware reportedly caked with dust, leading to speculation that second-hand units are being sold as new.

The accusation

Cryptocurrency miners reached out to Zooko Wilcox, the founder, and CEO of Zerocoin Electric Coin Company, explaining the ongoing dispute with Bitmain over the hardware they received.

“Someone privately sent me these allegations [in Chinese]…along with Bitmain’s response,” Wilcox said. Adding, ”The communication gap between the West and China makes it hard to disentangle.”

As reported, one of the miners that shared their accusation with Wilcox wrote on the predominant Chinese social media platform QQ that the B3 Miner of Bitmain they had received provided “seriously inadequate” computing power compared to previous batches.

A photograph was also provided by the group, showing a B3 Miner coated in dust, leading them to believe the unit they received had been previously used.

Bitmain’s response

Bitmain responded by confirming that they had verified with their internal department that indeed, 100 ASIC mining units were found to have what was described as minor issues. In context, of 10,000 units per batch, only 1 percent of these were impacted.

The statement from Bitmain can be translated loosely from Chinese to: “Among the right defenders, some are refunded and after an investigation, it was revealed that some are still underpowered and some are repaired. Some media outlets claimed that a few hundred people have received mining equipment that is poorly functioning. This is not the case.”

The team from Bitmain noted that just as in every major manufacturing operation, it is not possible to guarantee every ASIC miner corresponds perfectly to its functionality brief.

Emphasizing that any inadequate hardware would be compensated, Bitmain stated: “Any product can be imperfect, and there will be shortcomings in the process of enterprise development. We have also compensated the miners who have received mining equipment with inadequate computing power and the mining equipment are now being run properly.”

The company clarified that should any further issues arise, any customer issues a sub-standard mining unit would receive full compensation.

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