TerraHash Responds To Questions After Declaring Bankruptcy


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Some points to consider before accusing us of scam:
1. We stopped taking orders as soon as we had enough orders to account for the chips we ordered. If we were a scam, we would have continued taking orders and could have easily raised double the money we did.
2. We spent hundreds of thousands of dollars on components, heat sinks, cases, boards, cables. For people saying that its “only a few resistors”, look at the BOM provided by BkkCoins. It says components cost around $23 for a K16. And this does not include the heat sinks (~$14), boards etc. For each K16, the components including the heat sink, board, power cables, etc. cost us around $45. And we were prepared to assemble around 5,000 K16s (for 80,000 chips). There goes $250,000. Why 80,000 chips? We had ordered 40,000 of our own and had at least 4 other parties who were going to get their boards assembled from us. But guess what? Tired of the delays from Yifu, they all ended up getting a refund from Avalon.
3. We spent so much time and effort trying to source the really hard to get components. You can go read the Klondike thread where everyone is discussing the shortage of the PICs, the IR3895s, and others. But we have all the components, we even overpaid to get some of them. Show me a scammer who would do that.
4. For the components that even we could not get, we invested a lot of time to search for alternates. For example, the Power Inductor 38L361C was not available anywhere, so we instead bought SPM10040T-R36M170. But the latter was not pin compatible with the former. So we ended up changing the circuit board. I will publish the updated KiCad files. Would a scammer go through all this trouble? Anyone with half a brain can answer this.

If we were a scam, we would have disappeared on June 20th.

Why going out of business?
I am really sick and tired of all the scam accusations. I appreciate all the negative criticism that the community does, resulting in catching scams in early stages in order to protect the newer members of the community. But baseless scam accusations from day one have taken their toll on our company. The FUD spread by a few members (along with the delay from Yifu) lead to a lot of refund requests. The result of which was that, if we continued with the project, we would have been left with inventory worth hundreds of thousands of dollars in our hands. And it would have been almost impossible to sell it at a price where we could even break even. Even if nobody asked for a refund, we would still have been left with about $125,000 worth of useless components (read point 4 above). But with about half of our customers asking for a refund, we would be stuck with another $350,000 worth of inventory that we couldn’t have sold for more than $150,000, putting us under red for over $300,000. I am sorry, but I am not running a charity. It made much more sense to ask for a refund from Yifu and pay back as much as possible, without going into debt.

Why only a 50% refund?
With people who paid with PayPal taking a 100% refund, it leaves a lesser share for everyone else. I am sorry, but that’s how it is. We do not want to be owing hundreds of thousands to PayPal. Also, with some customers contacting our bank with fraud accusations, Chase has shut down our bank accounts. In my opinion they were just looking for an excuse. They have already contacted us in the past, asking for more information about our business, just because we were a “Bitcoin related business.”

Patience is a virtue
Now, you can either be content with the turnout of the whole fiasco and stop attacking me personally, and wait for your refunds. Or, you continue accusing me of being a scammer, and continue publishing my addresses publicly and tarnishing my image. Its up to you. Some of you have already done a lot of irreparable damage, not just to me but to all the TerraHash customers. And please remember, that there is only so much that I can take. If pushed into a corner, I will defend myself.

TerraHash Officially Announces Bankruptcy!

Official BitCoinTalk.org TerraHash Account

Some events happened last week, that have forced us to make a decision to go out of business. A lot of issues compounded to press us to do this. The failure of the Klondike project was one. Chase, our bank, shut down our accounts. Also the delay in the shipment of the chips has resulted in a lot of customers asking for refund. We already owe a lot of money to PayPal, and with all the refund requests, it is impossible for us to continue our operation profitably. So we have decided to dissolve the company.

We are going to ask for a refund from Yifu. As soon as we get a refund from him, we will start refunding all the orders. We will be able to refund about 50% of every order with this amount. We are trying to get our money out of Chase, which will help us refund another ~5% of each order. We are trying to return as many components as we can, and as soon as we get more money back, we will send additional pro-rated payments to each order.

Once we get a refund from Yifu, we will be sending an email to everyone asking for a current Bitcoin address where to send the payments.

TerraHash Goes MIA

The official TerraHash account on the bitcointalk.org forums has gone completely dark and has not even bothered to login to their account since September 14th, nor posted since September 9th. At this point there can be no doubt that this company in my opinion should be avoided at all costs.

Some users are reporting that 100’s of thousands of dollars paid in bitcoin or bank wire are still outstanding with no hope of being recovered unless legal action is taken to recover the funds.

TerraHash Ignores BBB



BBB Complaint Case#3xxxx1(Ref#11-2xxxx6-3xxxx1-19-500)

Complaint ID#: 3xxxx1
Business Name: TerraHash, Inc.

BBB has made several attempts to contact the business regarding the above referenced complaint. We regret to inform you that we have not received a response from the company.

BBB develops and maintains Reliability Reports on companies in our service area. This information is available to the public and is frequently used by potential customers. In the case of your complaint, the company’s failure to promptly give attention to the matter will be reflected in the report we give to consumers about them.

If the company has contacted you in the interim, please notify BBB immediately.


Lena Palacios
Consumer Services
BBB Complaint Department

Terrahash Ignores All Requests For Information


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The TerraHash Scam continues…

Received the below email from the BBB this morning, terrahash has not responded to them either.

So not only does this company ignore all customer requests but all requests from anybody including PayPal and now the BBB.

Complaint ID#: xxxxx
Business Name: TerraHash, Inc.

You recently requested our help concerning a problem with the company named above.

The company has not responded to BBB to date. If you have heard from the company please contact BBB at (408)278-7400.

We encourage you to use our ONLINE COMPLAINT system to keep up with the progress of this complaint.

To go directly to your complaint click on the following website link:


Lena Palacios
Consumer Services
BBB Complaint Department

TerraHash Lied About Chip Orders



Ok guys, here’s the deal. Given the current conditions (rising difficulty, Avalon uncertainty, etc.), a lot of people who ordered chips from Avalon are willing to resell their chips at cost price. This was not true a month ago or so, when we made a deal to acquire two additional orders for a premium (We never bought those orders, but only made a deal to pay a premium once they had chips in hand). We have decided to scrap those deals and instead buy chip orders from people who want to get out by selling their order for the price they paid. We have got 3 offers so far. We will re-open pre-orders after buying these.

We will keep you posted on this development.

Also, all these 3 offers are for May orders.


Where to file complaints and reviews for TerraHash


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Are you sick and tired of waiting for your refund from terrahash.com? If so take action today and demand that your voice be heard. Amir and Justin from terrahash should honor their tos, faq’s, return policies and publicly announced refund policies as well as following the FTC guidelines regarding refunds.


FTC Complaints Pile Up For TerraHash


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An anonymous source has reported that numerous posters on the bitcointalk.org forums have decided to file complaints with the FTC, with one user reporting losses of $3500 and another with $750.

It looks like these folks are starting to get serious about their efforts as well, posting their complaints to sites like Pissed Consumer and Ripoff Report.

In other news the /r/bitcoin reddit thread on terrahash has picked up the story from coindesk which circulated the other day regarding the same topic.

TerraHash TimeLine Of Events


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July 09 – TerraHash claims their PayPal account is now active, still no word on outstanding refund requests.

Issue with PayPal has been resolved. We have access to the funds now.

About the refund policy, it was changed way before the orders were taken. We believe most of the refund claims being made now are because of the falling USD/BTC prices. The “item not received” claims being made on PayPal are deceiving and misleading, as everyone who placed an order knew that products would be delivered within two weeks of the delivery of the Avalon chips. This was also written on individual product pages. Some people are abusing the PayPal refund process by making false claims. Any how, we will be refunding all those orders now as a few people have showed interest in buying those cancelled orders. However, we are doing this as an exception and our refund policy is still the same.

We again stress that everything is going on-track, and we will deliver all the orders within the promised time-frame.

July 05 – TerraHash posts the following, which no one claims to have gotten, video of their board has yet to be made public. TerraHash amid public outcry that they produce any evidence that they have purchased the additional 30,000 ASIC chips goes quiet yet again.

Just sent out an email. We have secured two additional early-may orders of Avalon ASIC chips. We now have 40,000 chips (all ordered before May 16) which are enough to process all the orders that we received during our pre-order opening. If we get the Avalon chips by the end of this month, we will ship out all the orders by Mid August.

On a separate note, the test board is hashing now. I will post pics/videos tomorrow. Have a great weekend!

June 19th – TerraHash’s PayPal account is on hold due to large influx of funds yesterday.

“We will send an email [on June 21st] to let you know whether your order falls within first batch or not, and when can you expect it to be shipped. You can then cancel your order or choose to keep it.”

“We believe chips ordered today will be shipped at most a couple weeks after the ones ordered in April, not 2 months.”

But their Avalon chip order screenshot shows an order date of May 10th.  What April chip order?

May 10th – TerraHash places order for 10,000 Avalon chips.
May 14th – Cloud Hashing send $80,000 down payment for 10x fully populated DX Larges (6400 chips)*1 to TerraHash.
May 16th –  TerraHash places second 10,000 chip order.
June 4th – Cloud Hashing cancels their 10x DX Large order.
June 5th (approx)  TerraHash moves into their offices and shows pics of some fans and a multimeter.
June 13th – TerraHash show Avalon chip samples and empty Klondike board.
June 14th – TerraHash announces they are going to take preorders on June 18th.  (Probably because they need to give an $80,000 refund to Cloudhashing (see link to article below)
June 18th – Pre-orders open at 9AM PST.
June 19th – Terrahash orders more Avalon chips – they expect this order will ship a couple weeks after their first chip order(s).


*1) This assumes the $105,000 quoted order cost in the Coindesk article is because each DX Large is $10,500.

* TerraHash – all unpaid PayPal/Bitcoin order will be cancelled on June 19th.  Bank transfer orders have 2-3 days to go through and save their place in the queue.

* TerraHash – largest order was for two fully populated DX Larges.

* TerraHash opened for pre-orders on June 18th at 9AM PST.  TH said ordering was supposed to be open only to early subscribers for the first 24 hours, but at some point became open to all.

* TH has shown a screenshot of a 10,000 chip order dated May 10th 2013, and says they ordered another 10,000 chips within a few days of the first one (likely between May 14th to May 16th using funds from rcvd from Cloudhashing on May 14th).

List of Orders placed (as reported by individual on this forum)

18860 chips accounted for in 68 orders equals 277 chips per order.
20,000 chips = First 72 orders paid in full will be fulfilled in the first batch.

TerraHash estimates the second batch will be shipping a couple weeks after the first.

Bank transfer orders have 2-3 days to be received, and therefore save their order number.

TerraHash says that orders will ship according to initial order placement, as long as payment was made within 24-48 hours.   But basically this only applies to wire transfers, allowing 2-3 days for those to go through.