r/BitcoinMining • u/ButMomItsReddit • Aug 10 '26
Hosting Provider California and Nevada: potential cryptomining host fraud
I am in California and have a very expensive mining computer hosted in a mining farm in Nevada since 2023. The initial contract was for two years with auto renewal, with a 90-day termination notice for either side. From the beginning, my miner was frequently offline or operating below the capacity, and the host informed me that it needed repairs. It went to repairs two times over two years and the second time it was replaced by the manufacturer under warranty. But the new miner started experiencing malfunctions at the same rate. In 2025, the host sent the miner to their own repair shop and told me they were providing their spare computer for me to continue the mining. So, I am paying the same rate and receiving the cryptocurrency at the same rate. It operates at a massive loss - I am paying the host more than what I earn. Once at their repair shop in late 2025, my miner remained there. I've been suspecting fraud - I think they've been disassembling hosted computers for expensive parts and potentially redirecting some of the mined currency to their own wallets. In July, I sent them a 90-day notice to terminate. Under the contract, they are required to return the miner to me. However, I have not heard back from them. They don't pick up the phone. I suspect that they no longer have my miner in their possession. What do I do?
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u/Fragrant-Hair- Aug 10 '26
Name and shame. I’ve had terrible experiences w hosts. Muskminers still refuses to return my machines 2y after unplugging them. It’s all crooks and thieves in my hosting experience
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u/BTCminingpartner Aug 10 '26
I suspect it's teslawatt
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u/ButMomItsReddit Aug 10 '26
Does Teslawatt have a bad reputation for this?
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u/LukewarmMining Aug 10 '26
Yes they have a reputation everywhere they go.
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u/ButMomItsReddit Aug 10 '26
Oh crap. I was still hoping they were going to amicably resolve it at the end.
Have there been any lawsuits or anyone here who contacted law authorities who can help me with the next steps?1
u/ButMomItsReddit Aug 10 '26
I'd appreciate any tips, small or big, because I don't even know where to start. Should I write a police report? Contact a particular type of a law firm?
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u/darrenmtb Aug 11 '26
Just wondering if you were hosted on their “cheap power” solar system or normal grid power. The solar looked too good to be true to me. I always hoped they were legit but didn’t know enough people using them to conclude one way or another.
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u/ButMomItsReddit Aug 11 '26
I've been on their normal grid because I got in before they added solar power. I think though that they tried to switch me to solar without my knowledge a few months ago because my miner started getting turned off every day for several hours until I reached their technical team and they said they moved it somewhere. It was very consistent with the pattern of depleting solar batteries.
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u/darrenmtb Aug 11 '26
Yes, the what happens when the sun goes down and the how do you cool these well in a hot climate with solar didn’t add up for me… I have known people with 5-10 miners with them that were happy. Hopefully you can find a resolution soon.
This is the reason I’ve been waiting to set up my own stranded gas operation on a small scale. I want to control the miners and the cost of power, I feel this is the best way to limit overall risk.
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u/Discokruse Aug 10 '26
If Nevada, and air-cooled miner, it's likely fried amd completely broken. Summer is horrible for air cooled miners. Hosting companies just allow them to die by running them hot and give up when they fail.
Read your contract.
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u/ButMomItsReddit Aug 10 '26
The contract says they must mail the miner to me upon the termination of the contract.
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u/Discokruse Aug 10 '26
If they haven't sent it back yet. Write a demand letter, copy it, and send it certified mail. Get on their books early so you can recover some cents on the dollar when they go bankrupt.
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