Scrypt.cc may be the next cloud mining HYIP to fail.

Scrypt.cc has many similarities to another failed scrypt ponzi scheme Litecoin GEAR. Both claimed to have hashrate that if true would account for the majority of the total Scrypt network hash rate. In this post from BitcoinTalk Marcelo Santos of scrypt.cc claimed to have 850 GH/s hashing power:

Scrypt.cc

This graphic from litecoinpool.org shows the total network scrypt hashrate at present:

total scrypt hashrate

As the graphic shows there is no reference to scrypt.cc owning 850 GH/s of scrypt mining which would account for the majority of the total public scrypt hash rate. The company has never published any photographic evidence of mining farms, pool statistics or public mining addresses just as Litecoin GEAR or Bitcoin Cloud Services never did.

suchmoon from BitcoinTalk who created the thread that exposed GAWMiners as a fraud has recently posted about scrypt.cc:

suchmoon talks about scrypt.cc

Like the other failed services the company has a very active referral program promoted by true believers who do not seem to care they are promoting an HYIP as long as they get their investment back before the company fails. We make the case that the company stays solvent from income provided by new investors and minimizing payouts by encouraging menbers to auto reinvest dividends rather than withdrawing.

Here is another post from BitcoinTalk explaining why scrypt.cc cannot hide 850 GH/s of mining:

scrypt.cc ponzi exposed

Thanks to cryptodevil for the very clear explanation. True believers can no longer hide their heads in the sand.

The head of IT for the Cryptsy exchange also had this to say about scrypt.cc:

Scrypt.cc Is A Scam

How to Minimize Your Scrypt.cc Loss

If you currently own KH/s at scrypt.cc sell them while you still can. Just like Bitcoin Cloud Services and Litecoin GEAR any so called “cloud mining” company which promises fast and unrealistic return on your investment will fail, the only question is when.

Update 24 June

This note was posted on the scrypt.cc website today:

Scrypt.cc Exit Scam

Is this the exit scam? Other sites which have disappeared have used similar hack explanations. After the first hack why was the database not secured? It is looking like scrypt.cc is pulling a Litecoin GEAR style scam now.

Update: Scrypt.cc Ponzi Collapsing

As of August 20 scrypt.cc has been cancelling withdrawals and automatically reinvesting funds without user consent according to posts at the scrypt.cc thread at the Bitcoin Forum. Thanks to senior member ThePhwner who was able to pierce the Cloudflare veil and discover scrypt.cc is hosted in Arizona, US at phoenizNAP:

scrypt.cc hosting provider

If you have a complaint against scrypt.cc you can contact the hosting provider at adrianm@phoenixnap.com. It is time to get this scam website taken down.