Complaints

• Initial Complaint

  06/07/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Hello *** and ******, I hope all is well. It is unfortunate this is where this situation has come to. I was going over the payments sent to you: On 10/24/22, I made a payment of $1,386.68 (which included first month payment, a one-month security deposit of $578.34 which didn’t get used at all, and a $200.00 installation fee). On 10/28/22, I spent $460.71 to ship out the miners to you. On 11/19/22, I made a payment of $539.84, and I only received 9 days of service. On 12/21/22, I made a payment of $184.95 which didn’t get used at all. The total amount paid in this agreement was $2,572.18. The ** *** went online 11/5/22, and went offline on 12/14/22, and never turned back on. 40 days of service. The ** went online on 11/5/22 and went offline on 12/14/22, and never turned back on. 40 days of service. The two Z15 went online on 11/5/22 and then went offline on 12/5/22, and never turned back on. 31 days of service. All the machines were on for 31 days so that would cost $19.278 per day for a total of $597.62. Since the ** *** and ** continued to run for another 9 days and the two *** were off, the price per day is $13.117 for a total of $118.05. Grand total electric usage: $715.67. I wasted the $200.00 installation fee, the shipping fees of $460.71 to you, and all the lost potential mining profits which would be a much more significant amount given that they have been off for over 7 months. I then asked you on 4/19/23 to send out my miners to the new facility. As of today, you have only sent two of four of the miners (2 of the ***’s) and one of them arrived with a damaged PSU (which you did reimburse me for) and a damaged control board (which you did not reimburse me for which we hope that will resolve this issue with the unit) which costs me $101.65 and I’m sure the new facility will charge me for labor to replace it. Given that it has been over 7 months of this agreement, and I only received a little over a month of service, I would like to settle with you and only pay the electricity used. I now realize you never planned to turn on my miners ever again and just kept deceiving to me to manipulate me and get me to cancel this agreement. I would like to be reimbursed for the rest of the money you received. You would also be responsible for the shipping costs and waive uninstall fees. Also, you will need to reimburse me for the damaged control board and labor to have it fixed. FINALLY, AND MOST IMPORTANTLY, you need to either immediately ship my remaining two miners or replace them with the same or better models. I am willing to put aside all the lost revenue if you agree. I think this is more than fair to resolve this amicably without having to escalate this situation which I am prepared to do. I guarantee this will only get more expensive having to deal with this the longer it takes to resolve. If you do not agree, I will be requesting more as time progresses. You continuously lied to me and are in breach of our agreement. I believe this is fraud. I would have never signed up for this had I known this is what would transpire. You should have never taken me on as a client, but you did. This is on you, and you need to take full responsibility for this situation that you caused. I demand a refund of $1,956.51 (I need to add labor for fixing the control board once I know how much they will charge if that resolves the issue and more if it does not) AND MOST IMPORTANTLY, you need to either immediately ship my remaining two miners or replace them with the same or better models. to end this amicably. If you agree, I will also request to have this complaint removed from the BBB. I am not negotiable on this and believe this is fair given the circumstances. I truly hope we can end this right now, without any escalation. I expect a response and resolution within 5 business of receiving this notice. I hope you understand my position on this situation. Thank you.

  Business response

  06/29/2023

  Response to complaint:
  
  In response to *** ******’, representing ******** ************, MDA states as follows:
  
  *** ****** contacted our business initially in June of 2022, requesting for hosting services. At the time, we did not have capacity and requested he check back at a later date. He followed up again in July of 2022 and August of 2022, again expressing interest in hosting with us. Officially, we came under contract in October of 2022 when capacity opened. By his first month’s bill (November), he refused to pay the amount billed, as he wanted his item prorated, even though his bill was specifically laid out in a schedule for him with monthly rent prior to agreement. In a gesture of good faith, we adjusted his bill.
  
  When *** ******’ miners arrived, one *** model immediately was experiencing issues. On November 15, we provided restarts and attempted to remediate any operational issues on our end. On November 18, 2022, we advised that we can not do anything more to increase the performance of the miner on our end. We advised to a warranty site from the area he bought it. *** ****** continued for the next two weeks to look into the issue on his end. He admitted this is the first time he’s run these miners in a co-location setting. His recommendation was it was not getting enough power and advised that he would be sending a new Power Supply, which our team installed. We sent pictures of the installation.
  
  On November 21, *** ****** ********* machine logged offline. He reached out and said he’s never had these issues. We advised that our operations were completely fine. Mining machines are known to behavior in a variety of ways, which can have a multitude of reasons. At this time, we offered to buy out *** ****** out of his contract, so he could join another co-location, since he was unhappy with his hash rate performance. He indicated he loved our service and did not want to do that.
  
  On November 27th, *** ****** reached out and said he spoke to another repair center, which stated our routers were “Cheap” and that “must be the issue”. We replaced cables and switched routers free of charge, at *** ****** insistence, even as all other clients were operating in the container.
  
  On November 30th, *** ****** again spoke with outside expert and advised that they think one of his hashboards is damaged and that he may need to get it repaired.
  
  On December 9th, our site, connected to a gas well, experienced a well failure, which caused a serious safety concern. The site needed to be shuttered until the lessor could repair the issue. Severe weather in the month compounded the issues. Towards the end of the month, the generator also experience damage during well repairs. We advised *** ****** of all the issues being experienced.
  
  On January 16th, we offered to send *** ****** miners back to him, as the repairs were going to take an undetermined amount of time and we did not want him to experience any more downtime. He explicitly refused and stated he “would wait”. Through January, we kept him abreast of the replacement parts status.
  
  In February, *** ****** demanded his miners be turned back on. We advised the safety issues and the need for inspection of the site. He advised that he was considering buying two more miners and wanted to send them and add contracts with MDA. We advised we could oblige once the repairs were made. At this time, he asked for a lower billable rate. We advised that this was not possible, and he had not been billed since November while we completed repairs. *** ****** stated “this downtime was costing him money”, which he felt entitled him to better rates. We advised that we were not operating at the time, so no financial gain was being made at his downtime. In addition, *** ****** contract specifically outlines “each party waives the right to recover any damages pursuant to its remedies herein, neither party shall be liable to the other for, and each party waives the right to claim any, consequential, indirect, punitive, special or incidental damage or lost profits or any other consequential damages (including damages related to the a loss of ability to mine or otherwise collect cryptocurrency….).
  
  On February 21st, we again offered to send *** ****** miners back to him, as the safety issues had compounded on our property and we did not want him to lose opportunity to mine any longer. He again declined.
  
  On March 13th, *** ****** advised that he wanted to buy two more miners and send them to MDA to host. We advised that we didn’t have capacity for any miners at the moment while we worked through our repairs.
  
  On March 23rd, we communicated that we were still trying to get the site up and running.
  
  On March 31st, *** ****** asked to send more miners, which we again stated we did not want to take any more miners on until our facility was back online.
  
  On April 10th, *** ****** advised that he wanted to move his machines. We agreed this would be the best approach, as our generator vendor has not made deadlines to deliver new equipment and we were at a loss. We advised it would take a few weeks to collect all miners and equipment and send them to respective clients.
  
  On May 5th, we provided photo evidence and serial number for the 2 Z15 models and shipped them via ***, at a cost to MDA. *** ****** accused us of lying and saying we were trying to keep his machines.
  
  On May 8th, we described to *** ****** that two of his miners got packed into a pallet to be shipped to another warehouse on accident. It also happened to another client as well. We advised the moment our operator went through each of the 19 pallets to locate them, we would send out.
  
  For the next few days, *** ****** accused us of lying to him and keeping his miners everyday.
  
  On May 18th, our operator advised that he had not been able to look at the pallets, as his girlfriend was in the hospital, having brain surgery. We sent *** ****** pictures of the text exchange to prove this. *** ****** then told us his PSU was damaged in shipping for one of his units. We sent him $100 to replace the PSU.
  
  On May 24th, 19 days after shipping the miners to his new facility, which were in the same working order as when shipped out, *** ****** indicated his miner was again having control board issues. It was the same serial number that was having issues when we first received and made the recommendation for warranty on November 15th.
  
  On May 25th, *** ****** sent a series of messages stating that we needed to either ship out his miners or buy new ones for him.
  
  On June 3rd, *** ****** sent a series of disturbing messages at 2:43 am est. He threatened that action has started and things are going to get much worse for us.
  
  On June 4th, *** ****** sent a picture to us at 6:43 am, which was a personal residence related to our operation. This was interpreted to be a direct threat to our health and safety. We made it clear at that moment that we would not be communicating with *** ****** through text message any longer and would be filing a police report.
  
  On June 7th, we recovered *** ****** ** and sent to his new facility.
  
  On June 9th, we order *** ****** a brand new ** *** miner to replace the miner of his we could not recover. This was the last miner of his we had in our possession.
  
  On June 17th, *** ****** sent an email stating he did not like the performance of his **, and he would be added it “to his case”. He also submitted a report to the BBB, claiming our company to be a fraud organization.
  
  In conclusion, we made multiple attempts to provide *** ****** with his mining machines back. We have provided a termination agreement along with the offer to return his deposit formally. All along, we have been extremely patient and transparent with him, given the operational challenges we were facing. We reject his notions of fraud and impose our own concerns of harassment, erratic behavior, and dangerous threats. He has since demanded 10,000 dollars, brand new machines, that he would report our business partner to the disciplinary board if not complied with, and that we used his machines for our own personal gain. We reject all of his accusations as more of his attempt to shake our business for more money to cover time down, which he felt he missed out on profits for, even though he could have had his machines back at any moment.   All dates are provided have detailed and timestamped photo evidence to support. 

  Customer response

  07/02/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:
  
  Before I respond to their reply, I would like to update this case and include the latest email I sent to them on 6/28 which is before I received the BBB response and after I received the two miners I was waiting for.  They had also sent me a contract to refund me $1,356.68 which isn’t enough to cover this situation.  I do not feel I have to sign a contract to get back money that is rightfully mine.  Here is the message I sent:
  “I reviewed your contract and I have to say I am not accepting this at this point.  The BBB message was sent at a time where I had no clue I would receive a completely dead *** and a damaged **.  You guys are trying to completely cover yourselves without even making me whole at all.  Your response says you sent me a new ***.  You did not send me a new ***.  You sent me a new PSU for a *** since that arrived damaged as well.  You also make no mention whatsoever of the damaged **.  I am 100% certain if I take all the legal avenues I am entitled to, I will get way more than what I will be offering now.
  
  Below is my new offer and I would like to first go over the facts of this situation again.  First, I would like to go over the payments sent to you:
  
  On 10/24/22, I made a payment of $1,386.68 (which included first month payment, a one-month security deposit of $578.34 which didn’t get used at all, and a $200.00 installation fee).
  
  On 10/28/22, I spent $460.71 to ship out the miners to you.
  
  On 11/19/22, I made a payment of $539.84, and I only received 9 days of service.
  
  On 12/21/22, I made a payment of $184.95 which didn’t get used at all.
  
  The total amount paid in this agreement was $2,572.18.
  
  Now here is the actual service I received:
  
  The ** *** went online 11/5/22, and went offline on 12/14/22, and never turned back on.  40 days of service.
  
  The ** went online on 11/5/22 and went offline on 12/14/22, and never turned back on.  40 days of service.
  
  The two *** went online on 11/5/22 and then went offline on 12/5/22, and never turned back on.  31 days of service.
  
  All the machines were on for 31 days so that would cost $19.278 per day for a total of $597.62.
  
  Since the ** *** and ** continued to run for another 9 days and the two *** were off, the price per day is $13.117 for a total of $118.05.
  
  Grand total electric usage: $715.67.
  
  I wasted the $200.00 installation fee which I do not believe I should be responsible for given there was a 1-year contract associated with this and I just a little over 1 month service. I also spent shipping fees of $460.71 to you.  Finally, I lost all the lost potential mining profits which would be a much more significant amount given that they have been off for over 7 months. 
  
  I then asked you on 4/19/23 to send out my miners to the new facility.  As of today, you had lost one of my miners which you replaced with the same one.  One of the ***’s is completely dead and arrived with a damaged PSU.  You did reimburse me for the damaged PSU but the *** unit is still dead.  We tried replacing the control board which did not solve the issue and spent $110.65 on an item that is not returnable with the seller.  Due to all the lost mining profits and now having a completely dead unit due to your negligence and breach of contract, I would like a ***Pro as a replacement for all of this.  Although this newer model unit will not cover all my potential losses, it will help to gain them back over time and only costs an extra $1,000.00.  At today’s prices according to Apexto, this unit costs $2,500.00 plus shipping.  I am more than happy for you guys to provide a return label and take back the damaged *** and working PSU and do as you please with it.
  
  Next, you sent me the ** 8550 back with one of the hash boards dead.  Due to all the lost mining profits and now having a dead hash board due to your negligence and breach of contract, I would like a ** 9500 as a replacement for all of this.  Although this higher model unit will not cover all my potential losses, it will help to gain them back over time and only costs an extra $1,000.00.  At today’s prices according to ******, this unit costs $4,750.00 plus shipping.  I am more than happy for you guys to provide a return label and take back the damaged ** 8550 and do as you please with it.
  
  The total shipping for both units came out to $600.00.  The grand total for both units at today’s prices comes out to $7,850.00.
  
  As for the electricity used, given that it has been over 7 months of this agreement, and I only received a little over a month of service, I am only willing to pay the electricity used.  I now realize you never planned to turn on my miners ever again for me, and just kept egging me on and lying to me to manipulate me and get me to cancel this agreement.  There is evidence to suggest my machines were being used to your benefit without my permission.  I also believe there is fraud which is more serious.  I would like to be reimbursed for the rest of the money you received.  You would also be responsible for the shipping costs and waive uninstall fees. 
  
  As for the rest of the lost revenues, I am willing to put aside all the lost revenue if you agree.  I am also willing to agree to the rest of the terms in your offer.  I have been severely distressed and suffered emotionally because of this.  I think this is more than fair to resolve this amicably and make me whole without having to escalate this situation which I am prepared to do.  I guarantee this will only get more expensive having to deal with this the longer it takes to resolve.  My offers will not remain the same.  If you do not agree, I will be requesting more as time progresses.  You continuously lied to me and are in breach of our agreement.  There is also fraud here.  I would have never signed up for this had I known this is what would transpire.  You should have never taken me on as a client, but you did. This is on you, and you need to take full responsibility for this situation that you caused and make me whole.
  
  To sum everything up, I request a refund of $1,856.51, a new *** PRO, and a new ** 9500 to end this amicably.  You can also send me shipping labels to send back the damaged *** and the damaged ** 8550.  You guys can deal with the units you damaged.  I am not negotiable on this and believe this is fair given the circumstances.  I truly hope we can end this right now, without any escalation.  I expect a response by the end of the week.  My goal is the end this and move on as quickly as possible.”
  
  After I sent this message, they then asked me to call them but given the situation, I would prefer to keep everything in writing.  They persisted to call and I do not want to. 
  After sending this email to them, I received their response on BBB on 6/30.  I have to say I am not surprised by their response.  This is what I have been used to and have been experiencing with this fraud company.  They just keep making up excuses and not attempting to make anything right for everything they have caused.  I understand the machines are expensive and they are obviously struggling with their business but none of that is my fault or my responsibility.  Their response makes absolutely no attempt to correct these damaged units and are blaming me, which is absurd.  They made no real offer to make anything right for what they have caused me.  They are basically just complaining about their experience with me as a client, explaining all the problems they had running their business, and providing a timeline of events which has many inaccurate statements.  This does warrant them to damage my units and not help the situation at hand whatsoever or even make any attempts to make this right. 
  They said I refused to pay the bill.  This is incorrect.  The bill was wrong, and they adjusted it when I mentioned it and then I paid.  This is a moot point.
  One of the ***’s did not immediately have any issues.  The PSU had issues after two weeks of being there.  It was working perfectly fine when I sent it to him and when they first plugged it in.  Something happened to the PSU while at their facility and it stopped the *** hashing at its full capacity but the *** was still working.  We were doing many troubleshooting steps and ended up buying a new PSU and the *** started working fine.  When they finally sent it back to me, the brand-new PSU was damaged, and the *** unit was not working at all.  So, they damaged two PSU’s and the ***.
  The KD Max kept overheating in their facility.  That’s why it was going offline. 
  Their operation obviously was not set up properly in many ways based on their response to all the site issues shows they had many issues with their facility and had to shut down.  It is evident that this is what has caused damage to my miners.
  We had a 1-year contract, and I barely got over a month of service.  They kept trying to get me to break the contract which I didn’t want to do given the investment in it.  They also kept telling me issues would be repaired very soon so I kept waiting and waiting until I finally found a new facility to take on my miners when I realized they never actually planned to turn my machines on again.
  After about 6 months of no service from them, I finally said enough is enough with all their excuses.  ****** said it would take 1 week to send my miners.  Again, this did not happen, and it took a month and three weeks to send all my miners to me.  Out of the 4 miners that were in perfect working condition when I sent it to them, when I got them back only 1 *** and PSU arrived fully working.  They had lost the ** *** and bought me a new one.  The other *** was completely dead and same with the PSU for that one.  Finally, the ** arrived with a dead hash board.
  To this day, I still do not have an acceptable offer to make this right and make me whole for everything that they have caused.  I haven’t even received my security deposit back and the unused electric payments.
  Like I said in their email to them, “To sum everything up, I request a refund of $1,856.51, a new *** PRO, and a new ** 9500 to end this amicably.  You can also send me shipping labels to send back the damaged *** and the damaged ** 8550.  You guys can deal with the units you damaged.  I am not negotiable on this and believe this is fair given the circumstances.  I truly hope we can end this right now, without any escalation.  I expect a response by the end of the week.  My goal is the end this and move on as quickly as possible.”
  

  Regards,
  
  ****** ****** 

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