User Allegations againt GAW Miners Paycoin their CEO Josh Garza

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Below are unconfirmed user allegations against the CEO of GAW Miners, Josh Garza. There remains no confirmed evidence of fraud but we think potential Paycoin investors should proceed with caution. The whole situation seems sketchy to say the least, and when an investment appears to be too good to be true, it usually is, especially in the cryptocurrency industry. Furthermore, Garza and GAW have used their considerable amount of capital to buy many ads, speaking spots, and sponsorships. This helped them to get a lot more press than they most likely would have otherwise, attracting many new, more mainstream users, that may arguably be easier to deceive.

We reaffirm that the allegations listed below are unconfirmed. Just thought they were interesting regardless. Stay smart out there. We will update this page as we learn more. New updates will be added to the top. Oldest updates will be at the bottom.

Jan 19 - 2:36 PM (17:36 GMT )

CoinFire: SEC Investigation of GAW Miners Underway

Jan 13 - 10:50 AM (15:50 GMT )

Marshall Stokes Personal Blog: Paycoin – Always a Catch when Josh Garza’s Makes A Promise


Garza creates the Paycoin Honor Program which consists of a “vault” to hold Paycoins owned by people who want to get the $20 per coin they were promised. Managed by an “authenticated” third-party, it is effectively an escrow account. Would-be participants have 30 days (Feb 1 through Mar 2, 2015) to sign up for the program. Here’s the tricky part: Garza guarantees he will purchase $100,000 worth of Paycoin each month from the escrow account. Eventually everyone who wanted $20 Paycoin will, in fact, receive that amount of money for each of the $XPY they send to this service after signing up (which requires unspecified “account verification”, by the way).

It sounds great on paper because $100,000 sounds like a lot of money. But let’s do some math. There are approximately 12,400,000 XPY in existence, 6.9m of which are locked up in “prime stakers” (source). If the remaining 5.5m or so Paycoin were sent to this Honor Program escrow wallet, it would take 4.6 years to buy them all for $20 at $100k per month.

Jan 12 - 11:20 AM (16:20 GMT )

GAW Miners and Paybase Announces New $20 Buy Back Scheme for Paycoin to begin Feb. 1.

Sounds Sketchy especially considering everything that has happened. As always, we suggest proceeding with caution and staying clear of Paycoin for the time being. As time goes by, more details will emerge and you will be able to make a more educated decision. Right now, this sounds like your traditional pump dump scheme. GAW being able to maintain a $20 floor for Paycoin seems unlikely if not downright impossible. That's not how free markets work. Short of buying up all the coins themselves, which would most likely destroy their profitability as a company, the sell pressure will most likely remain too great. When something is too good to be true, it usually is.

Jan 8 - 8:00 PM (01:00 GMT Jan 9 )

CoinFire: Paycoin Purchasing by Credit Card Disabled by Stripe for TOS Violation

Jan 7 - 7:04 PM (00:04 GMT)

Interesting highly emotional response from a user on Paycoin's Hashtalk community forum that really puts the whole situation in perspective (if true):

This whole situation has my emotions playing ping pong, for well over a week now. Lots of us need XPY to be a success in order to make up for not mining bitcoin for what seems like months now.

Once I started to mine bitcoin, I was hooked. A daily bitcoin income? Hell yes! I invested the majority of what I could at GAW. Luckily the hashlets had just come out. They were awesome! And within a few months of reinvesting, I was mining over 2 bitcoins a day between GAW, LTCGear, and Hashnest. It was everything I had hoped for.

And one day it seems like it all just... Dried up. My 2 bitcoins a day turned into 1, then 0.5.. then 0.02... The scrypt goldmine collapsed. I knew it would eventually, but it happened much quicker than most of us planned for. So we started mining these hashpoints, because Josh had outlined a great idea for a new coin that sounded wonderful for all of us. I was totally on board, who woudlnt be with all those features that were announced to be available at release?

So, with full faith in Josh, GAW, and Paycoin, I converted and sold all of my hashlets and I sold all of my hashnest mining to stock up on bitcoin so I could purchase XPY.

We had delay after delay for the Paybase launch. But I didn't mind, they had a lot of features they wanted to get ready for the launch day, features I had faith would be at least be partially functional.

The moment Paybase was actually released, and I saw the buy order for the $20 floor hit cryptsy, I was so excited. It was the first proof I had that things were going as outlined. that second, I was sold on xpy and had full faith that the plans would continue to unfold along the timelines Josh had outlined. And instantly I started buying XPY using the bitcoin I sold my miners for. I bought for days and days, spending every last bitcoin I had. I bought most of my XPY at 0.042, fully expecting more GAW buy orders to come in and get us to the $20 floor, which at that time, was the plan. Anyone with doubts about it before release was quickly reassured by Josh, so much so, it made it sound like there was no way that it wouldnt happen.

Not long after spending all of my bitcoin for xpy at 0.042, I read an announcement that there will be no further plans to implement a floor. Something about legal problems. I was dissapointed that they had not done the most basic of legal homework before assuring us of the $20 floor. But I still had faith that we could do it as a community! I scraped up every last bit I could, and kept buying XPY.

Day after day passes. The price drops more and more. The features dont come. Josh doesnt give us much reassurance anymore. And heck, today I couldnt even sell XPY on Paybase. Currently its only feature.

And I'm just told to wait.

I know I will get comments like why even post this? or what does this help?

It helps me to blow off steam. Steam that builds because I have to wait, and wait... And every day that passes I start missing more and more, the one thing I wanted all along.

All I wanted to do when I started this journey was to mine bitcoins. I loved bitcoin. And somehow I got talked into getting rid of it all. And now in the end I realize that Im left with no bitcoin... Im left with no miners... The XPY I sold my miners for is now worth 1/3 of what I bought it for. The reassurance from Josh and all the users was sky high. In the end, of course I make my own decisions. But I feel like I was talked into something I wouldnt have normally done. And I dont even know how that happened. I guess I just had that much faith.

Our CEO once had faith in bitcoin. But now he has forwarded to paybase, and his comments and the comments of other users has made me feel like everyone has turned against bitcoin. Like now I have to choose between btc or xpy, and if I choose btc I'm somehow no longer on the team. At least that is what it feels like. And that hurts all of us, I am still a big believer in btc. I sure wish Josh still was.

That is why XPY is so important to me right now. Ive lost the one thing I wanted out of this journey, bitcoin mining. And so now the success of XPY is the only basket I have, and it holds all of my eggs.

I understand if the mods need to remove this post, I dont want to damage any faith anyone has in Paycoin, I still want it to succeed, I still have a lot staked. But I had to post my feelings for my own sanity to remain intact.

I will be watching the QA tonight, and I have a feeling that whatever is said during that will be the deciding factor on how I move forward. I hope my faith can be salvaged with honest answers.

I love you hashtalk, please dont be mad at me for needing to say what I feel ;)


Archived Screenshot (just in case post is deleted)

Jan 7 - 4:36 PM EST (9:36 GMT)

Coindesk: GAW Miners and the Disappearing $20 Paycoin Floor

Jan 4 - Registration to GAW Miners Forum has been closed and all existing messages have been made private.

Jan 3 - CEO of GAW Miners Josh Garza posts on Reddit Bitcoin Community (It appears that Garza has since deleted his post)

Screenshot of post before it was deleted:

Jan 3 - Bruce Fenton: Bounty of One Bitcoin for the Most Accurate, Fair Comprehensive Info about GAW

Jan 3 - Shapeshift pulls Paycoin support

Jan 2 - New response to Garza/GAW/Paycoin situation by Organizer of upcoming Miami Bitcoin Conference

Jan 2 - Organizer of the upcoming Miami Bitcoin Conference responds to community outrage over GAW CEO Josh Garza's scheduled speech

Jan 2 - Reddit User eyearetruth :

Hi guys, does anyone mind if I drop a few things off here? Ok first let me leave THIS1 (archived and saved) and then THIS2 alrighty and one more THIS3 *EDIT2 I just wanted to add in another lie HERE Josh says its the first of its kind which is false as does the exact same thing it's simply a merchant API nothing revolutionary, not to mention it still doesn't work and the search at launch caused an infinite error loop which has since been fixed as the search does absolutely nothing now. The full article can be seen HERE


Two 10 Month old Claims of Mining Rig sellers being conned on eBay by Josh Garza. Users have since deleted their accounts.

Main BitcoinTalk (Bitcoin Community Forum) Thread Discussing GAW Miners:

Another BitcoinTalk thread discussing GAW Miners: Reports on GAW

Nov. 22 - Is GAW Miners Lying about Partnerships?

Nov. 27 - How trolls took down Coin Fire with a DMCA

Dec 31st - Amazon Further Denies PayBase / GAW Miners Involvement

Dec 31st - Massive Security Breach at Paybase

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