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NYU Student Owns a $6M Crypto Mine. His Secret Is Out
- ValentineC 3y agohttps://archive.ph/8mpaY https://archive.ph/8mpaY
- linusg789 3y agohttps://ghostarchive.org/archive/MCan5 https://ghostarchive.org/archive/MCan5
- borissk 3y agoWonder if it's normal in China to underpay and/or delay payments to contractors - so the Chinese investors just brought their way of working to USA or if there's something else going on.
- jdksmdbtbdnmsm 3y ago[flagged]
- op00to 3y agoDid you say this just to troll, or can you back up your statement with facts?
- boomboomsubban 3y agoAs a starting place, Donald Trump is famous for it. https://www.foxnews.com/politics/dozens-of-lawsuits-accuse-trump-of-not-paying-his-bills-reports-claim https://www.foxnews.com/politics/dozens-of-lawsuits-accuse-t...
- deleted 3y ago[deleted]
- ipnon 3y agoThe rule of law and civil courts specifically are much stronger in the US than PRC, although there are many ways that you can get screwed with contracts here too. A common saying is that every bankrupt contractor takes out another business.
- jdksmdbtbdnmsm 3y agoThere is a big difference between law and "rule of law." In the US, attorneys and courts are far out of reach for unpaid contractors without wealth.
- google234123 3y agoThere are cheap lawyers. Small claims court is almost free
- jdksmdbtbdnmsm 3y agoSmall claims courts have limits often too low to justify the money and time and availability costs, which are all things that unpaid contractors without wealth do not have.
- acdha 3y agoSmall claims court has very low limits. Beyond that, it’s very easy for a large company to make a lawsuit cost more than it’s worth - you’re paying court costs up front, they’re going to litigate every single detail to say that you didn’t complete everything (both to lower the total and to prevent you from being able to do full time work for someone else), and delay things hoping you’ll give up or make some mistake. It’s not super common but every freelancer I know has a client from hell story. The abusive ones get pretty good at calibrating the amount they can screw someone out of while still being only marginally worth the cost and effort of suing.
- uoaei 3y agoWell for one thing, in the American system you have to bring a civil case against anyone who breaches contract, which in many cases is not worth the legal fees which means scammers know they can get away with screwing people over for just enough that they will get away with it.
- gopher_space 3y agoIf you take out a loan instead of paying cash the bank now has a vested interest in your build and will keep an eye on contractors to an extent.
- Consultant32452 3y agoMy anecdata is that I'm a contractor and customers regularly pay late, except in December. I have one customer who was 3 months late on payments at one point this year. Then in December they paid up for what they would normally have owed in January a month early to stick me with the tax bill. Every contractor I've ever talked to has similar stories and worse.
- Scoundreller 3y agoI guess this is a fundamental different between accrual vs cash accounting. In accrual accounting, you would book the revenue when the service is provided and delaying/advancing a payment shouldn’t change the fiscal year it falls under. In Canada, most of the time you’re required to follow accrual accounting. I guess if you have the choice and expect routine delays to payments, cash accounting is the way to go.
- borissk 3y agoAnd what if you do the work and never get payed? Sounds stupid to pay taxes over income one hasn't actually received.
- Scoundreller 3y agoYou have allowances for doubtful accounts and/or bad debts. Also sounds stupid to game taxes by delaying/advancing payments.
- op00to 3y agoDo American customers pay later than Canadians? Mexican? Russians?
- Consultant32452 3y agoI only work in the states, but I've had customers who were owned abroad. Basically the same behavior. I'll add one note I forgot in my OP. The bigger, richer customers are more notorious for paying late. I wouldn't say I avoid the fortune 500 type companies, but I don't go after them.
- jdksmdbtbdnmsm 3y ago>can you back up your statement with facts? Huh? My statement is the facts. What are you talking about?
- em-bee 3y agook, you are making a factual claim. what the commenter is really asking for is evidence to back up that claim.
- Scoundreller 3y agoIt is a funny thing that I find in b2b vs. b2c. If I want to buy some component as a consumer, they’re going to take payment up-front or tell me to screw off if I ask for them to send first and get paid later. Meanwhile, receiving the product/service first and then net30 and such payment terms are common in North American business. I do wonder if business works the same way in other cultures or if they take the approach that consumers typically deal with.
- em-bee 3y agoi heard a story from chinese friends about subcontractors that the large companies in china that contract them even help them to get loans so the subcontractor can actually do their work until they will get paid, and then use the payment to pay back the loan. like payday loans at large scale.
- Scoundreller 3y agoSelling your account receivables is a thing. Often called “factoring”. No idea how common or unusual it is for the customer to help arrange it for the supplier: https://en.m.wikipedia.org/wiki/Factoring_(finance) https://en.m.wikipedia.org/wiki/Factoring_(finance)
- jdksmdbtbdnmsm 3y ago>Selling your account receivables is a thing. Huh? A thing? What is your point here?
- drewcoo 3y agoWhy was that downvoted? I thought it was common knowledge that a bill isn't due until they send a pink one. Money in the bank or invested elsewhere makes more money while the payee waits. Even the things that can damage your business's credit rating for tardiness have an extra 4 week grace period before any score impact. Maybe the crowd here is more rule-adhering software geeks and less business-oriented.
- borissk 3y agoOr maybe in the software business one's reputation costs a lot more than the tiny amount of profit one can make by delaying his contractor's payments.
- aifooh7Keew6xoo 3y agoMy understanding was that a US owner contracted aspects of the facility construction and neglected to pay the contractors, then sold the completed facility to the Chinese investors. It sounds like the original owner's contractor is alleging that the Chinese investors are also not paying them for services at the mine, while the Chinese investors are claiming the contractor failed to deliver? It's not really clear from the article who is even ripping who off to me.
- quickthrower2 3y ago> It's not really clear from the article who is even ripping who off to me. Least scummy cryptocurrency story.
- mrb 3y agoMy impression as well. It seems to be typical mismanagement of the mine's construction, or people disagreeing on contractual aspects, where the responsibilities stop, etc.
- junofan 3y agoIt’s the other way round. See “getting the factory pregnant”—working with manufacturing partners in China and then delaying payment until after they’ve paid for your work to gain leverage over related work.
- patrickhogan1 3y agoContractors and suppliers often face payment issues globally. In Texas, when contractors work on a property, they are entitled to lien rights. Normally, property transactions involve a title company. One of their roles is to ensure the clearance of liens and manage the escrow of funds, transferring the purchase money from the buyer to the seller once they have established clear title. Additionally, they provide title insurance to the new owner, guaranteeing a title free from encumbrances like construction liens. This process is crucial for safeguarding the interests of all parties involved in property transactions. Its hard to tell who is in the right without more facts. But it is clear the way the transaction was handled is part of the problem.
- toomuchtodo 3y agoConversely, Texas mechanics liens have little recourse when a property owner encounters a contractor acting in bad faith. I recently assisted a friend challenge an improper lien on their homestead in Dallas when a plumbing company quit the job halfway through because they couldn’t use their epoxy repair technique and walked away. The contractor filed the lien for the total amount agreed upon because state law makes it trivial to do, and it is an uphill battle to challenge a lien. It only worked out in the end because we had accumulated a paper trail via email and sms messages with the contractor, and reported them with said evidence to the state licensing apparatus. If engaging contractors in Texas for property work, get everything in writing and have an attorney familiar with construction law at the ready.
- jmacd 3y agoI've experienced the same thing. In commercial projects in some places, the contractors actually just file liens right away "as a matter of practice". They automatically expire 60 (or some number of) days after the last day of work on the project, unless it is "perfected" by filing an actual lawsuit. At least that is the case in Canada. That seems to at least shift some of the cost and risk to the lien filer as they must pay for a lawyer, be ready to prosecute, etc.
- 3y ago
- asylteltine 3y agoI’m glad his secret is out. I’ve had enough of Chinese money buying up properties in America and Canada. When will it end? When will the government take it seriously? It’s ridiculous that an LLC can own property but you have very few ways to cheaply find out who is behind said LLC
- tdeck 3y agoThis system was set up this way to benefit the domestic ruling class. The fact that it might benefit foreign capitalist is incidental.
- unc0n 3y agoWhy should we care where money comes from so long as it is legal and so long as there is not a national security concern? Should there be any preference for a private french citizen's money as compared to a private chinese citizen's? Isn't that one of the things that makes this country better than places like China which place all sorts of arbitrary restrictions on who can buy certain things there? I agree that the opaqueness of LLCs can be a problem but the fact we have such hysteria about a random student just because he's chinese smacks of racism. Those who are truly concerned about the malign influence that comes along with chinese money would do well to vote with their wallets and not support businesses that end up sending work to china in exchange for money (That and holding accountable the politicians who allowed china to exploit the system of world trade while not playing by the rules). That is your prerogative but the general fungibility of money in a ostensibly free-market system is a virtue that should be preserved.
- networkchad 3y ago[dead]
- owlglass 3y agoI am assuming that GP was not specific about Chinese investors' money due to national security concerns or sinophobia. More pressing, especially to anyone hoping to live anywhere near Vancouver, is the fact that Chinese investors account for 1/3 of the total sales volume of property (2016 figures). [1] [1] https://vancouversun.com/business/local-business/chinese-investors-buy-one-third-of-vancouver-homes-national-bank-estimate https://vancouversun.com/business/local-business/chinese-inv...
- 1024core 3y agoI wonder what kind of equipment is in those little pods? How does the cooling work?
- dev_tty01 3y agoOdd. If one is trying to build an under-the-radar facility you would generally want to over pay contractors and keep everyone especially happy.
- friend_and_foe 3y agotl;dr a Chinese guy bought a bitcoin mine with Tether which is super duper dangerous because the banks weren't in the loop.
- atypeoferror 3y agoIt’s dangerous because not being able to track widespread ownership of major in-country assets by a geopolitical adversary puts one at a disadvantage; it’s dangerous because it makes it much more difficult to ascertain that the proceeds of criminality are not being used in purchase of those assets - just to name a couple of the reasons.
- friend_and_foe 3y agoSo why are foreign nationals that are not permanent residents or citizens allowed to own property? At the very least they should have to register their land property purchases with some department. The problem here isn't actually the money used, it's the fact that the US does not genuinely care if foreign agents own property inside the US.