Obelisk In Legal Trouble

In a lawsuit in federal court in California, three claimants allege preorders offered by Obselisk, Inc. and its parent company for SC1 and DCR1 cryptocurrency mining appliances were nothing more than a scheme to raise millions of dollars through the sale of unregistered securities. According to the lawsuit, the preorders were sold based on misrepresentations of the products’ delivery date, specs, and profitability, as well as the availability of full refunds should the hardware not live up to the defendants’ claims.

Filed against Obelisk, Inc.; its parent company, Nebulous, Inc.; and the companies’ CEO and vice president of operations, the lawsuit explains that the defendants developed Application-Specific Integrated Circuits (ASICs) known as SC1 and DCR1 designed respectively for mining Siacoin and Decred. The mining process for both cryptocurrencies, the case goes on, utilizes the hardware to solve “complicated mathematical problems with cryptographic hash functions” for which miners, who are in competition with other miners, could be rewarded with Siacoin or Decred.

During the presale process, the defendants allegedly promised investors that the products would meet a specified hash rate and be delivered by June 2018. Buyers were also assured that they would receive a full refund if the applications didn’t arrive by the deadline or perform according to their specifications.

Contrary to these representations, the defendants failed to ship the mining applications by June 2018 and admitted that the products hash rates were actually far below the rates promised during the presale. The claimants submitted refund requests but have yet to receive full refunds for their purchases.

Obselisk promised the moon but delivered them an overpriced paperweight months later, and then reneged on their promise to provide refunds if they were unable to provide Miners on time or up to their specifications.

The claimants claim that the preorders were essentially securities that were never registered with any state or federal government entity.

This Post Has One Comment

  1. I am 1 of many thousands of obelisk customers who was lied to and deceived with Obelisk false advertising and careless use of customers funds to further fund their products for batch 2, 3, 4, 5 and upgrade board sales, and now another GRIN miner with zero remorse. Nebulous Inc is Obelisk having the same CEO and same agenda just under a pretend umbrella to make it look like a separate entity on paper.

    – Obelisk purchased no insurance and burned all customers pre-order money on batch 1. They were in trouble and had to sell more fake units Batch 2 to 5. The hardware from these units all came from the missing mining boards that were never provided to customers and Obelisk quickly made another lie that the units were “upgrade-able” and the hash-rate numbers are much lower than they anticipated. This is all a lie, if you add back the missing board to the original unit, the hash-rate was met. They just needed another way to get more hardware for further batches to keep the lie going.

    – Obelisk had profit calculators on their front page right next to big pre-order button promoting their sale of a consumer product and how much money you will make per day/week and month. Adding more to their deception early on.

    – Minimum hash rates and delivery in June 2018. The units came half filled or 1 board missing which explains the lower performance, however if you add the missing board the hash-rate is right. This is another deception of how Obelisk figured out a way to multiply customers hardware and sell more in further batches.

    – Promise of delivering the latest ASIC mining tech, only to turn out it’s obsolete before they even started the manufacturing process. Customers requested refunds but Obelisk refused it and retracted any refunds statements.

    – There are many more facts which were published on reddit and their own discord, which was later edited and even deleted to hide the truth.

    – Obelisk and Nebulous should be dragged though the courts and all their assets and possessions claimed by creditors and paid back in full to their customers. Fraudulent and deceptive CEO and their team involved should enjoy some JAIL time.

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