GiBit's Collapse Exposes Major Pitfalls in Mining and Crypto Circles

Author: Kyle Within a single day, LTG plummeted over 60%, and GiBit mining pool's client became inaccessible. News of the actual controller "Lei Zong" being detained spread widely in the industry. Over the past year, GiBit mining pool, which claimed to have government resources in Kyrgyzstan and operated its own mining farm, attracted investors through "shared mining" to pledge collateral and mine BTC and LTG. For a time, GiBit spanned both the mining and crypto circles. Initially, users needed to deposit BTC into a centralized client developed by the company as collateral, then pay mining machine rental fees to conduct "cloud mining".