SEC Blocks Spotlite’s Kodak-Branded Crypto Mining Scheme

 

 

 

Spotlite USA confirmed on Monday that its plans for a Kodak-branded Bitcoin miner leasing operation have been shelved, according to reporting from the BBC. The plan, which involved renting Spotlite’s Kodak KashMiners mining rigs to would-be crypto miners, has reportedly been blocked by the U.S. Securities and Exchange Commission (SEC).

Spotlite’s plan was to rent the rigs to users at a rate of $3,400 for a two-year period. In exchange, users were promised that they would earn $375 per month from their mining efforts, for a total return of $9,000 on their initial rental investment – a claim that was criticized by many observers as unrealistic, given that Bitcoin mining difficulty increases over time. The contract also ensured that Spotlite would receive a portion of the mined Bitcoin.

For its part, Kodak insists that the Spotlite miners were not officially licensed. The company also suggested that none of the devices had been installed at Kodak’s Rochester NY headquarters, despite Spotlite head Halston Mikail's previous suggestion that his company planned to install several hundred of the devices at the facility.

Mikail suggested that Spotlite will now operate the mining rigs privately in Iceland, rather than rent them to individual customers.

 

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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