Kodak KashMiner 'scam' halted: Report

A report by the BBC has said the Kodak-branded KashMiner scheme has been halted by the US SEC.
Written by Corinne Reichert, Contributor

The Kodak KashMiner

(Image: Corinne Reichert/ZDNet)

Plans to use the Kodak-branded bitcoin miner labelled "KashMiner" have been abandoned, according to a report, after critics panned the planned return on investment for those using the machines.

According to a report by the BBC, Spotlite CEO Halston Mikail said the United States Securities and Exchange Commission (SEC) had prohibited the scheme from proceeding.

According to the BBC, Mikail said the company will now privately run the bitcoin mining operation using equipment installed in Iceland.

Iceland has been used by bitcoin miners thanks to its lower energy costs due to its climate and access to renewable energy including hydroelectric, solar, and wind power -- although earlier this year, criminals stole around 600 servers from Icelandic datacentres worth around $2 million being used to mine cryptocurrency.

The BBC added that Kodak has claimed the KashMiner was never licensed by the company.

The Kodak KashMiner was displayed during CES 2018 at the photography company's booth, with Kodak Blockchain Project licensee Spotlite Energy Systems of California showcasing the product.

At the time, the Kodak licensee had said an upfront payment of $3,400 for a two-year contract would lead to bitcoin production value of around $375 per month at the then-bitcoin value of around $14,000. At the time of writing, bitcoin is a touch over $6,700.

The partnership would provide the licensee with half of the resulting $9,000 made over the 24-month period.

Bitcoin production would reach around $25 per day on the Kodak Bitcoin HashPower Upfront Payment Plan.

The bitcoin miner was showcased on the same day that Kodak announced its own KodakCoin cryptocurrency utilising blockchain security technology, which it said was aimed at enabling image rights management for photographers.

The camera company's "photo-centric" cryptocurrency was launched under a licensing partnership with Wenn Digital, and also involved a blockchain-backed image rights management platform called KodakOne.

In an interview on the sidelines of CES 2018, Wenn Digital CMO Bruce Elliott told ZDNet that the companies have taken a highly regulated approach to its project and initial coin offering (ICO).

"We're US companies, we're not from some far-flung place ... it's our company here in the US that's issued it; we've filed with the SEC; we've put all of our regulatory pieces in place; we're not a startup, either, so because of the companies we've brought together, we have revenues, we've got staff, all those things already, and now we're going to fill out this platform. And then we have the trusted platform of Kodak, so you put those things together and we think that really differentiates us," Elliott explained.

Related Coverage

Kodak bitcoin miner on display at CES 2018

A Kodak Blockchain Project licensee has displayed the Kodak KashMiner during CES 2018, with plans to split the proceeds with customers on mining bitcoin.

Kodak announces the KodakCoin blockchain cryptocurrency

The KodakCoin cryptocurrency and the KodakOne rights management platform will both be backed by blockchain security, Kodak has announced.

The dirty secret about Bitcoin: It's amplifying ransomware, cybercrime, and more (TechRepublic)

As Bitcoin grows in popularity, potential buyers need to be aware of risks that go along with it.

Twitter CEO: Bitcoin will be world's 'single currency' within 10 years (TechRepublic)

The cryptocurrency, and its underpinning blockchain, have serious implications for the business world, too.

Bitcoin: A cheat sheet for professionals (TechRepublic)

If you're curious about the original decentralized cryptocurrency, here's what you need to know about Bitcoin, including why the price of a bitcoin keeps climbing.

An unknown threat actor has so far managed to steal over 388,000 BTG from cryptocurrency exchanges.

Bitcoin Gold suffers double spend attacks, $17.5 million lost

An unknown threat actor has so far managed to steal over 388,000 BTG from cryptocurrency exchanges.

Critical vulnerability impacts Bitcoin Cash miners

Users of ABC mining software are being urged to update their builds immediately.

Editorial standards