Is Advanced Mining Group (advancedmining.io Formerly VBit Mining Technologies) a Scam or Legit? My Review of the Hosted Bitcoin Mining Company.
Make sure you read the updates at the bottom of this article as things have drastically changed with Advanced Mining!
Disclaimer: Please be advised that I’m a customer and link references to AdvancedMining.io herein are my personal affiliate links (highlighted in bold). I know what you’re thinking. I won’t be entirely forthcoming since I’m trying to make a buck. I promise you, I did a TON of research before and after my purchase. I will be sharing both the good and bad sides of the story. I wanted to curate all of my research into one place. I wish this information was readily available when I was doing my research. I implore you to make your own decisions and do your own due diligence on the company. This should help with a lot of the heavy lifting. If you then choose to move forward with the company and found this useful, I would greatly appreciate using the affiliate link to purchase your package.
Also please note that VBit Technologies was recently acquired by Advanced Mining Group (see Edit 6 below). I’ve updated most instances of the business name VBit Technologies to reflect the rebrand to Advanced Mining including links to their website except where it didn’t make sense.
Quick History and Background of VBit Mining Technologies (Now Advanced Mining Group)
Ok, now that that’s out of the way, let’s dig in. This company is somewhat of an enigma. They’re young (founded in 2018). Not a whole lot of info is out there. Some of the info that is out there is untrue or misleading. Let’s be honest, the crypto industry, in general, is a clusterfuck (excuse my French) of scams that you need to dodge. So let’s get right into it.
I’m guessing if you’re reading this, you probably Googled “Is Advanced Mining a scam” or something along those lines. Obviously, you want to know if the money you’re investing is safe and this company isn’t going to just run away with it or turn out to be a Ponzi scheme. That’s totally fair and exactly what I did. Part of the reason I’m writing this is to help you make an informed decision. I also wanted to point out some of the weaker points in the company in hopes that it provides motivation to improve on those aspects.
Advanced Mining (formerly VBit Technologies) was started in 2018 by Danh (Don) Vo, their CEO. Don has been a serial entrepreneur ever since he was young. There’s an interesting PhiladelphiaWeekly article that dives deep into his backstory if you’d like to read more. There’s also a Coindesk feature on Don where he discusses taxes in relation to mining. Jin Gao is Advanced Mining’s Co-Founder. The company is registered with the SEC. There’s a Bitmain blog post detailing the purchase of over 3000 19 Series Antminers. That, at the very least, proves that they do host the equipment they say they’re hosting.
My Personal Advanced Mining Story & Due Diligence
Let’s dive deeper into my personal Advanced Mining backstory. I purchased a black diamond package on February 27, 2021. I sent an ACH payment for 50% down and am financing the rest. I’m not quite sure why anyone would do otherwise. It’s a no-brainer to go with the 0% financing on the second half. Paying by ACH turned out to be a poor decision. I assumed it would clear in two business days but since it was a pull transaction and not a push, it took much longer. The payment didn’t fully clear until March 12th which delayed my activation date by a few weeks. My activation window was March 20th through April 10th. I didn’t get activated until April 4th. So the payment date to activation took 23 days which seems long in my opinion but is pretty standard these days based on the high demand. Advanced Mining knows this and I’m told is trying to hire more staff to keep up with demand. This is one of the issues with anything in the crypto space right now. The platforms can not meet the demand so I’m hoping in the next month or two, they can build their staff to keep up.
When I was doing my due diligence, one of the first articles I came across, as many others have, was from FullyCrypto.com. Obviously, it’s not a glowing review. The article was written in May of last year (2020) by someone who is not a customer nor has had any experience with the company. The author’s points in the article are all alleged and based on pure speculation. There are no facts that have been proven, even up until this point. He kept bringing up cloud mining even though he stated that VBit is hosted mining. I feel this is misleading readers into associating it with cloud mining scams. I think a fair point to bring up is the possibility of a hosted solution being disguised as cloud mining (I get more into this later). Overall, my personal opinion is that the article is hearsay perhaps written as clickbait.
Now let’s take a look at one of my Reddit posts which actually gave me some pause after I made my purchase. I started to second guess my research and wanted to dive deeper to make sure I wasn’t making a mistake before it was too late to get a refund. I think the key argument for most users in that thread is the fact that Advanced Mining uses their own proprietary wallet (Qabu) and software. I understand the concern, however, a Reddit user pointed out some valid justifications for that in another thread…
I don’t think most hosting services would allow you to have control over your asic miner and there’s an absolutely good reason for it.
Most new users wouldn’t know how to setup and configure their mining pools correctly leading to issues and high number of customer service requests and many miners would be down and not hashing.
If you don’t properly update your firmware whether just to update to latest version or use something like brains os, you could brick your miner. They don’t want anyone accidentally bricking their miner then having to deal with the aftermath.
If you make a settings change on certain miners (i.e Normal to Turbo mode), then the miner must be manually reset. So their customer support would constantly have to fix hosted miners.
It’s a security risk
Basically, if they allowed the average person access to their miners, they would have a significant and constant barrage of customer service issues to fix miners that users messed up or potential bricked. They would have to go find miners and physically reset miners constantly.
He makes some valid points that resonated with me. It makes sense. Most of the customers of Advanced Mining don’t have the technical know-how to adjust miner settings remotely. There’s a very high likelihood that problems would arise if they tried. I could see why things are the way they are with the pool settings.
Speaking of their proprietary software, below is a screenshot from the Qabu wallet. Even though you can’t currently change pool and wallet settings, it is user-friendly and made for non-technical users.
As you can see, I’ve been consistently paid out daily without any issues and this has been the case for every customer of Advanced Mining (to my knowledge) since their inception. If anyone wasn’t getting paid out, there would definitely have been some sort of complaints online by now. I can send BTC out of the wallet at any time and have twice so far without any issues.
I spoke on Telegram with CEO, Don Vo, regarding changing wallets and pools in the future. Here’s what he said…
So currently they can change the pool if manually requested and you submit a ticket for it, but they need to do it for you. It sounds like they’re integrating pool choice into their software sometime in the future.
Now let’s talk about Advanced Mining’s affiliate program. The way it’s structured, yes, it’s a bit alarming. I will agree with that. Personally, this is something I’d like to see them adjust. It has some pyramid-like aspects to it. If someone signs up under you, you get a flat rate referral payout along with a 10% hash rate bonus provided from company-owned machines for one year…not to mention the large prize bonuses when you reach a certain affiliate rank. Though it seems like a lot, to me, it seems sustainable judging by the pricing of packages and hosting. It does not seem very necessary, however. With the high demand for Bitcoin right now, I personally feel that they could get just as many customers with either the flat rate payout OR the 10% hash rate bonus without the prize bonuses. I’ll be honest here and admit it seems like too much. I might be shooting myself in the foot by saying that, but I’d much prefer the long-term success of Advanced Mining rather than some affiliate sales.
I will say this though…I’ve noticed quite a few comments in this Reddit post where users were alarmed that the Zoom meetings were focused heavily on the affiliate marketing aspect. I can give a very simple reason for that. The host of the Zoom meetings isn’t actually employed by Advanced Mining. The meetings are mostly hosted by a customer of Advanced Mining, who is trying to get affiliate referrals and help his downline make sales.
Let’s now address the concerns in this Reddit post regarding cloud mining. This is something that could potentially be plausible. Even now, I think if anything is a scam with Advanced Mining, this could be it. Maybe we all don’t get our machines when all is said and done BUT as time has gone on, the less I think this is true. When I signed up, the hosting agreement specifically stated we can buy our equipment for $1 (apparently we lease it so it stays insured). At least it’s in writing, but even after I signed, I was still a bit skeptical. What really helped put my mind at ease about this was seeing the co-founder, Jin Gao, unboxing some ASIC miners (Antminer S19 Pros) in the Montana facility via some Zoom meetings…
Now you’re probably saying ok, that’s cool and all, but those still could be machines owned by them and they’re just giving you the hash rate. If after this point you’re even STILL skeptical like I was, good, you’re doing your homework. Like you, I wanted more, so I requested the serial numbers for my eight Antminer S19 Pros (Black Diamond package). After support was able to get to it, they sent the SNs to all of my machines which I cross-referenced on the Bitmain website using their warranty lookup function and everything checked out. Now sure, they can still not send machines after all is said and done, but at this point, I have to give them the benefit of the doubt and say it’s very unlikely. I also know some people who have requested and received their physical equipment.
Final Conclusion / TLDR: Advanced Mining Group
Advanced Mining has done everything to put my mind at ease. I would not be writing this article if I thought there was a high probability you’d be getting scammed. I held off for quite some time before I was comfortable enough with my purchase and research to write this. Zoom out and look at the big picture. Advanced Mining has been operating for three years now with no customers reporting a scam. If someone wasn’t getting paid or not getting their equipment, something would have gotten out by now. Because of this and my personal experience at this point, I feel like there is a very low risk for Advanced Mining to be a scam. If anything changes with this opinion I will continue to update this post. Believe me, if I get scammed, you will know about it.
If you found this useful and you’re comfortable enough to move forward with a hosted mining package using Advanced Mining Group, please use my affiliate link when making your purchase.
Bonus interview video featuring CEO Don Vo…
Continue to AdvancedMining.io >>
Edit 1: Payout Change (Updated May 21, 2021)
Advanced Mining updated their payout method recently from PPS (Pay Per Share), a daily fixed amount payout, to FPPS (Full Pay Per Share) which is variable but generally slightly higher in payouts. I’m very happy with this move. Here’s the email they sent regarding the update…
Dear VBit Member,
Great news!
We just negotiated lower mining pool fees with btc.com for using their FPPS (Full Pay Per Share) mining mode. This means we are switching from PPS (Pay Per Share) to FPPS mode of payout effective May 21, 2021.
What does this mean for you?
You will see more volatility on a day-to-day basis, however, daily FPPS will earn more than PPS due to the combination of these lower pool fees and distributing the transaction fees in real time!
FPPS became a more common pay-out method for Bitcoin, while PPS leans toward alt-coins. Having said that, VBit thrives to go with the global recommendations to ensure your profitability.
If you have any questions, comments, or concerns don’t hesitate to reach out through our Help Center.
Sincerely,
VBit Mining Team
Edit 2: Insurance on Hardware (Updated June 14, 2021)
I was given a heads up that I forgot to mention one of the largest advantages to using Advanced Mining in this article…their warranty/replacement insurance plan. I mentioned it above but failed to elaborate. As long as you continue your hosting plan, your machines will be fully insured even after the year manufacturer's warranty. They will cover your machines from normal wear and tear and even a natural disaster as long as you are hosting with them. If it breaks they will try to fix it. If they can’t fix it they will provide an equivalent machine. This is the reason for the “lease” of the equipment and buyback of $1 after you decide to move the equipment elsewhere.
Edit 3: Reposted to Reddit (Updated June 20, 2021)
After waiting a couple of months and learning that Medium doesn’t index everything on search engines like Google, I decided to repost this article on Reddit. I will continue to update each as new information comes out.
Edit 4: Current Status with Advanced Mining Technologies (Updated September 20, 2021)
Since it’s been a little while since I updated this article, I just wanted to let everyone know that things are still running smoothly. So far no issues, and I’m still very happy with my mining package purchase with Advanced Mining Group. I noticed this article got picked up on Google finally so I’m guessing some of you who are now finally stumbling on it were wondering.
Edit 5: Post-mined Bitcoin Update (Updated January 25, 2022)
Someone asked me recently what I did with my BTC after it was mined, so I figured it was time to post a small update. Every time around $5K in BTC is accumulated, I remove it from my Advanced Mining Wallet and send it to Crypto.com to earn 8.5% on their 3-month earn option. I use their credit card so they kick in an extra two percent in CRO coins. That’s the highest I’ve seen across platforms like BlockFi, Celsius, Voyager, etc. They all seem to be reducing their BTC percentages and have limits on deposits. In my humble opinion, Crypto.com not only has the highest percentage, but also the most user-friendly app, and best customer service. If you’d like to do the same, feel free to use my referral link to get a $25 free deposit bonus when you sign up.
All is still well with Advanced Mining. Everything is running smoothly with no issues. I will add that BTC mining difficulty is at its highest right now so rewards aren’t quite as juicy as they used to be.
Edit 6: VBit Technologies Acquired by Advanced Mining Group (Updated February 1, 2022)
Apparently, VBit was acquired by a seemingly unknown Chinese company called Advanced Mining Group. Unfortunately, I’m not able to find any information about the company besides the press release. It looks like they’ve already rebranded the business name and website to reflect Advanced Mining Group. I’ll admit this change does make me slightly nervous that things could change, but on the other hand, it could be a good thing for the company. We shall see how this plays out. I’m currently updating this entire article to reflect the new name.
Edit 7: A Letter From the CEO (Updated February 17, 2022)
Customers of Advanced Mining were sent an email (copied below) from the new CEO, Lillian Zhou. It was nice to finally hear something from the new company that acquired VBit. I like that there is now a name we can associate with the company. Furthermore, it sounds like Advanced Mining wants to expand the support team and offer some nice perks, like interest on the BTC stored in our wallets.
Dear Advanced Mining Members,
My name is Lillian Zhou, CEO of Advanced Mining group, which, as you probably know by now, acquired VBit Technologies. It is my distinct honor, and with a great deal of excitement, that I am writing this message.
First and foremost, I have to emphasize that this change is a reflection of the incredible work each of you is doing to create the best global mining operation. I am deeply thankful to all of you! I want to ensure everyone that besides the change in management, we will still be offering the same great products and improving them in the near future.
I am proud to say that since its mining beginnings in 2015, Advanced Mining has dominated the “mining for itself” scene. While we have been growing behind the scenes, lately, we have started aggressively expanding our services and acquiring successful crypto mining businesses across the globe. After gaining valuable industry insight, we are confident that we can corner this market and make an IPO debut in 2023. We currently operate 12 data centers and expect to run over 50, becoming one of the top 3 mining companies by hashpower in the world by next year.
What does this mean to you?
Here is a glimpse of some exciting changes we have ahead of us that I am thrilled to share:
For starters, to ensure that all your support inquiries are answered swiftly, our help team will aggressively grow, and more communication channels will be at your disposal.
Secondly, during the 2nd quarter of this year, we will activate a head-turning 14% annual interest on all BTC held in the AM wallet — the highest interest paid on BTC in the market today!
Last but not least, we will be rolling out compliance training in the near future, along with new promotions and incentives for all of our sales affiliates.
You will receive a new series of emails from myself with further details about each change and transparent roadmaps and industry analysis.
For our new beginnings and further success!
Sincerely,
Lillian Zhou
CEO of Advanced Mining Group
Edit 8: BTC Withdraw Delays (Updated May 22, 2022)
Full transparency: it seems that BTC withdrawals from the Advanced Mining Wallet are being delayed. They sent out an email on May 12th blaming the delays on Bitcoin network congestion which is BS in my opinion. My other BTC payments went out just fine (and quite fast I may add). I’m still waiting on a withdrawal from Wednesday the 18th that still says it’s “batching”. I’ve also heard from other AM users having the same issue. Until they fix this, for the time being, I would NOT recommend you purchase any packages. Anything over 24 hours to withdraw BTC from your own wallet is unacceptable. With the market down, I’m a bit concerned they’re having issues with sending BTC payments. I will post another update shortly when (hopefully) this is resolved.
Edit 9: Withdraw Processed + New COO (Updated May 25, 2022)
My BTC withdrawal was finally processed today. It took a week to go through. I’m going to try another one soon to see if they fixed the issue. I’ll post another update once I do. On another note, we received notification that Ted Mucellin is the new COO for Advanced Mining Group. I appreciate seeing the names and faces of companies I do business with so this was a big plus for me. I feel a lot more comfortable with recommending packages again. I might wait a bit for the withdrawal update just to make sure, however.
Edit 10: DO NOT BUY ANY PACKAGES UNTIL FURTHER NOTICE! (Updated June 16, 2022)
The new COO, Ted Mucellin, already stepped down. Withdrawals are taking even longer than they were. The company suspended the Advanced Mining Telegram chat because so many users were complaining. Let’s face it. It’s a shit show. The writing is on the wall. I’d be very surprised if Advanced Mining is not a scam at this point. I’m crossing my fingers it’s not, and they can pull through, but it’s not looking good in my opinion.
Anyways, I created a subreddit as well as a Telegram group (since they suspended the official one) so miners can come together and figure out what the next moves are. Feel free to join if you’re looking to talk to the other miners. Let’s all pray that we don’t get rugged with Advanced Mining.
Edit 11: New Article (Updated July 12, 2022)
I had to write an entirely new article on the current situation as there’s a lot to unfold. If you’re a current customer / miner, it’s probably in your best interest to read.