Eyal Avramovich fronts angry Mining City investors in webinar
It’s not hard. “Recruitment slowed down. We ran out of money and unless you go out and lure new suckers in, we can’t pay you.”
Despite dragging Mining City through multiple exit-scams, owner Eyal Avramovich refuses to admit his Ponzi scheme has collapsed.
Investors continue to be left hanging, with future withdrawals the ever perpetually dangled carrot.
A few weeks back Avramovich held a webinar to address the collapsed state of Mining City.
Naturally it went down like a ton of bricks.
Mining City is run through MineBest. Avramovich (right) owns both companies but placed former MineBest employee Greg Rogowski (aka Grzegorz Rogowski).
Rogowski has been MIA for the past five months or so. This was explained away early on by way of Rogowski allegedly having a heart attack last November.
[9:20] Avramovich: Greg actually experienced a real heart attack, unfortunately. Almost four months ago?
Rogowski: At the beginning of November.
This left Avramovich to run the webinar.
[25:31] People are asking, “What’s going on with Mining City?”
I see people they lost money. It’s very painful for us. We made mistakes.
I made mistakes. I apologize. I didn’t run away, I take responsibility. I didn’t steal your money guys. I’m not rich.
And so came the excuses…
Nobody in Mining City had MLM experience
[11:12] I would say Mining City experienced several challenges with going up very fast.
Greg and I, we didn’t have experience with the multilevel marketing, and we relied a lot (on) the top leaders that joined first. How to build the system.
[43:24] This business model of MLM, (you) need to do it in a very very careful way.
We didn’t have experience in how to do it. And also the leaders that helped to shape the system, they didn’t have experience from the inside of the company. How to build it correctly.
Blaming Mining City leaders
Aval Avramovich isn’t a fan of Mining City’s leaders. They do however make a convenient scapegoat for the lack of updates.
[2:30] (For a) long time we communicated many things … with top leaders of Mining City, and apparently the information in the last month are not going down to the rest of the community.
And many people came and said, they don’t know anything, why are you so quiet? But actually we are talking at least once a week with the top leaders … but you can see that they are not delivering the messages.
[12:59] People are asking, “Is this a scam? Is this an exit-scam?”, because many things are not communicated.
Mining City’s leaders also apparently to blame for halted withdrawals.
[11:58] Mining City has some kind of compensation plan … the system pays more and more commission.
Greg communicated this with top leaders for years but leaders didn’t approve the right solution I would say.
And the system overload paid hundreds of millions of dollars to leaders.
And people here are saying “no commissions received”. They’re talking about three years of life of the company that paid hundreds of millions of dollars more to the leaders.
Blaming Mining City affiliates
[22:50] This business model of mining our own coin, then you guys promoted this coin to people that are your family, your friends, neighbors, that actually are not traders.
These people bought one time the coins and they hold them. And what happens is you create some kind of a high market cap. You create value but you don’t create liquidity. You don’t create market, trading, buy and sell on the exchanges with these kind of people.
(You) don’t everything try to create a market like what you see with most successful coins, like dogecoin.
[35:28] Once the binary tree system paid more than 35%, we had a business that’s not profitable.
And more than that, users that were supposed to get coins from Mining City, couldn’t get it because other users, that opened many multiple accounts in many levels, actually withdraw more than 35%.
So this is, I would say, a real legal and financial situation … that needed to be solved in a legal way.
And the solution that came out for Mining City team, is that to merge the multiple accounts into one account.
[39:49] This is the most legal way that the lawyers came up with … and also the most healthy way according to the business model.
When people come and say, “This is rubbish. It’s illegal. This is my money.”, we can argue, what is your money?
If the business model of the company is to pay no more than 35% sales commission, everything above it is not your money.
Especially when you guys violated the terms and conditions. You abused the system.
Mining equipment stolen in China
[6:11] Some things went out of (our) control. Like, for example, the theft of the mining machines in China.
Unfortunately these kind of things happen. Especially in this market, cryptocurrencies. That it’s not always regulated.
[26:23] I can tell you that in the last year I had nightmares with what happened in China.
It was very hard for me that assets worth millions of dollars and more, (were) stole(n) from us.
I am the victim, you guys are the second level victims here, or third level victims. Mining City is the victim also.
[27:41] You may have heard about a recent development in Kazakhstan, in the last few months.
That there is no electricity to connect the mining machines in Kazakhstan. This is a result actually of the government of China.
About 70% of all the bitcoin mining in the world was in China. And then (the) government of China banned mining.
A lot of Chinese companies started to look for solutions outside of China, and many of them came also to Kazakhstan.
And they connected a lot of mining machines without the control of the government.
The government started to see big problems here and became pretty much concerned that they don’t have enough electricity … so they decided to actually stop the mining for also good companies, like us.
This is unfortunate. We are just normal people, we cannot fight (the) government. I cannot fight the government of China or Kazakhstan.
[31:45] Unfortunately what happened last October was that regulations in Cyprus changed. And Mining City had to also comply to these regulations.
And there were a lot of risks to the company and to the managers behind it, to the employees if Mining City would not comply to the new regulations.
Avramovich attributes alleged changes in Cyprus regulation to Mining City stopping withdrawals last October.
We documented the subsequent KYC mess. As far as I know Mining City still has KYC problems and withdrawals remain disabled.
Blaming “the market” (BTCV)
Mining City’s Bitcoin Vault following the typical Ponzi shitcoin trajectory, is a sore point among Mining City investors.
They feel they were promised riches but instead were left bagholding.
[13:44] You know I was looking at my FaceBook and someone said, “Bitcoin Vault is a scam and we will expose you”.
And I said to myself, “Look what is going on in the market”. People don’t really understand what happened. And they think that we created some kind of scam coin.
Even people think that I sold my coins and created a dump in the market. But uh, this doesn’t make sense.
I’m still here. I didn’t disappear, I’m working all these years.
While Avramovich might still be around, that doesn’t mean he cashed out.
[14:55] Unfortunately someone, or some people, sold a lot of coins in a short time. And there were not enough people to buy these coins and the price of course went down.
(This) created some kind of snowball effect and scared the market.
Yeah, this would be the early investors who got BTCV for peanuts. This happens in every MLM shitcoin Ponzi.
[15:15] Now we didn’t sell a lot of coins, we only sold what we need(ed) for operation. This is how the project goes up.
It was pretty healthy for eight months.
[16:04] Someone here is writing, “You are scammer Eyal. You rug-pulled the coin.” It’s very painful for me to hear this.
You will not find any evidence of this because it didn’t happen.
Then there’s the claim that “hundreds of millions” have been paid in commissions. If that’s taken at face value, many more hundreds of millions were invested into Mining City.
Guess whose pocket a significant amount of that balance wound up in.
Avramovich plans to rebrand Mining City and reconnect inactive mining equipment.
[17:58] I would say the next step would be that to continue growing the social media of the project, and convince big influencers to promote bitcoin vault.
And the next step after that is to release bitcoin vault on the big exchanges.
[24:22] After some business development, marketing … collaboration with trusted people, influencers, trusted big companies, you could see development of this project.
And I believe, time will tell of course, that as long as we are here working, we have this chance that we will do the rebranding of the project, decentralization, work with big influencers, meet them face to face, show them we are not scammers, we are real hard-working people with great technology, the best transactions, and then, this is our goal.
I believe it happens with other projects and we can also do this. Of course we will need your help.
[30:06] The plan is to move the mining machines from Kazakhstan to more stable locations, in the next few weeks. Starting from next week in steps.
And um, (we’ll) start slowly connecting the bitcoin miners to the system.
Mining City investor’s reaction
General consensus appears to be nobody was buying Avramovich’s excuses.
The leaders certainly weren’t, hence the lack of forwarding Mining City updates to their downlines.
I couldn’t see the webinar chat but it appears to have been flooded with accusations of scamming.
[21:49] I see many people just write “scam scam scam”. I’m trying here to explain the situation.
If you don’t want to hear you are welcome to leave of course.
[41:40] We didn’t steal bitcoin guys, stop spreading false information and lies. It’s not helping you.
If you try to take your money from us, we don’t have it. All the value will come from hard work in the future.
If you guys are saying bad words about us you’re actually hurting yourself. Because imagine that employees of the company will not have motivation to help you to solve the problem.
You will not get your value, not from bitcoin vault, or electric cash or mining machines.
Fifty-three minutes into the webinar, Avramovich snapped.
[53:00] I’m not used to people writing me on the face. Scam, liar, this is not serious guys.
What scam, what liars? What? Tell me what did I scam you? Did I ever promise you anything?
So please guys, respect yourself and don’t just write bullshit things. Scammer, liar, where is my money, thief.
Guys do you have any evidence that I even stole one bitcoin from you? When you talk like this?
So please calm down. We need to work together to solve this situation.
Total Mining City investor losses are unknown. The company’s social media profiles are drowning in requests for KYC approval and withdrawal access.
Mining City support direct these requests to a Telegram group. But it appears affiliates aren’t getting what they want there.
Avramovich and Rogowski operate Mining City from Poland. To date Polish regulators have shown no interest in investigating the company.
At time of publication Alexa ranks top sources of traffic to Mining City’s website as Bolivia (24%), Colombia (22%) and Egypt (12%).
Update 3rd July 2022 – Greg Rogowski have moved to hide evidence of Mining City’s collapse.
I had provided a link to the webinar featuring Rogowski and Eyal Avramovich. The link pointed to a video on YouTube, which now returns;
This video is no longer available due to a copyright claim by Grzegorz Rogowski
Rogowski is assumed to have acted under instruction by Avramovich.
This article originally included a link to the webinar, which I’ve now removed.