Included in this update…
– Updated Terms of Service
– NEW KYC Requirements
– Binary Enforcement Rule
– Level up Commissions Adjustment
– Reconcile Negative Balances
– BCH SV Coins Now Available
– Bitcoin Gold – NOT Supported!
– Founder 1 & 2 Bonuses Paid
– Mining Pool “Pause” Feature
– GPU Mining Status
– BC Trader Update
– BC Premier Shutdown
Updated Terms of Service
We have just updated our Terms of Service to include a few new additions. If you already agreed to our TOS then you do not need to agree again we just wanted to make you aware of the following 4 important changes.
1. We added new KYC requirements for all accounts (more KYC details included below)
2. We added a new reconciliation clause that will allow for any negative balances to be adjusted using other positive wallet balances. This also includes wallet balances from other accounts that belong to the same person or entity.
3. We added a new Suspended Member duration clause that states if an account is suspended for more than 12 months it will automatically be deleted from the system and any claims to the account will be forfeited. There are numerous ways for an account to be suspended but the most common are fraudulent activity detected, not agreeing to our TOS, and carrying a negative balance on the account that cannot be reconciled. Once an account is suspended it will be frozen and not earn commissions until the suspension has been cured.
Here is a copy of the new TOS – Click Here (this can also be found at the bottom footer of each page).
NEW KYC (Know Your Customer) Requirements
As the Crypto market becomes more mainstream we have seen many new laws, new guidelines and best practices that have been implemented since the time BitClub Network launched in 2014.
One of the biggest compliance requests is to make sure full KYC details are collected along with AML (Anti Money Laundering) checks to make sure all transactions and people are documented.
We have always been collecting minimal KYC info but now we are going to require a full set of verification documents from each member before any additional crypto can be withdrawn. You will notice when you go to withdrawal any funds from your wallet you will first need to be KYC verified.
If your account has not been fully verified you will be redirected to our new KYC page to submit your details and complete the process. There are no exceptions or exemptions to this rule, we need your full name, full address, and then you will need to upload a document for ID verification as well as a second document for address verification.
Our support staff has recently been expanded in order to accommodate these new requirements in a timely manner. Our goal is to make sure your account is verified within 24-48 hours after you submit full documentation.
Please make sure you submit accurate information or your approval may be delayed. Once you are approved your account will have unlimited withdrawal capability. Thanks for helping us to comply with these additional KYC standards, we are doing this to make sure everyone stays protected.
Important Binary Enforcement Rule
In the past, we have not enforced a key rule of our Binary compensation structure and it resulted in thousands of credits being issued and commissions being paid that should not have been. We didn’t realize just how big this problem was until we ran some reports on it and realized we needed to urgently enforce this rule.
The rule is simple… Each member account needs to personally sponsor ONE person on the left side and ONE person on the right side of the Binary tree in order to be qualified to earn commissions. (this was established from the very beginning so this is not a new rule)
Most people have known this rule and are qualified because it was always written on the compensation plan page, however, there were a lot of accounts in recent years that took advantage of this so we have now enforced it.
Please check your account because you will not be able to cycle and earn any future commissions until this rule has been satisfied. We are not going to claw-back or go backward because this was our mistake in not enforcing the rule, however moving forward we will not allow any cycles or add any credits to accounts that are not compliant with this rule.
Please refer to the Compensation Plan page for more details.
Level up Commissions Adjustment
We built up a backlog of refunds from canceled shares that were purchased by accident or may have been purchased twice, or the member was with the United States so we had to process a refund. These refunds were run a few weeks ago and we will continue to run this script now every few weeks to make sure we don’t get that far behind again.
All of these refunds clawed back commissions from the Level up tree so you may notice a few negative balances or canceled shares if you look down into your organization. If your account was affected you will see a debit record in your transaction history with all the details of the share and username that was refunded.
In some cases, these clawbacks may have resulted in a negative balance in your BTC or BCH wallet which will need to be reconciled.
We have just added a new policy for all negative balances (as announced above and explained further below) where any positive balances will automatically reconcile a negative balance using the market rate at the time the transaction is converted
More details below…
Reconcile All Negative Balances
Due to refunds, clawbacks, and fraudulent transfers we have seen a lot of negative balances accumulate in member wallets over the past few months. One of the biggest issues we have been dealing with is members who are exploiting our transfer script.
In fact, this problem became so bad that we simply cannot resume transfers at this time because we found so much fraudulent activity and hacks that were double spending and tricking our system. Most of the accounts we found doing this were not actually linked to member accounts, these were fraudulent accounts created for the sole purpose of transferring coins and gaming our system.
Over the years we attempted dozens of fixes and each time we would solve the issue but then new ones popped up and the fraudsters were able to take advantage of this in a big way. We couldn’t protect this system anymore so rather than continue to try and patch the holes we have decided to disable this transfer feature entirely.
We now understand why no company will ever allow quick virtual transfers as we did. It’s just too hard to secure without a blockchain. You won’t find any MLM company, crypto company, or any other company for that matter who allows virtual balances to be transferred quickly and instantly. Let’s just say we learned our lesson the hard way.
In order to satisfy all of these negative balances, we are going to be doing 3 things…
First, if you have a negative balance in BTC or BCH then we will first look at the opposite pair (BCH or BTC) and attempt to rectify using the current market exchange rate.
Second, if you have a negative BTC or BCH balance that cannot be reconciled we will look at any other positive balances from the ALT coin wallets (ETH, ETC, XMR, DASH, and ZEC). These coins will be converted to either BTC or BCH based on the current market rate to satisfy your negative balance.
If and when these transactions happen you will see them as “admin transactions” in each ledger that has been used to satisfy the balance. If you have a negative balance on any of your coins you will not be able to withdrawal until the balance is satisfied
Third, if your account does not have any positive balances to rectify a negative balance we will look to see if there are additional accounts that are associated with your account through KYC records, emails, IP address logins, etc. If we find an account that belongs to the same person or entity we will use the positive balances to zero out any negative ones using the same two steps above. These will also be documented on both account ledgers as an “admin transfer”
IMPORTANT… We strongly suggest you rectify your own negative balances by making deposits because starting July 1st all accounts with a negative wallet balance that cannot be rectified through future mining earnings or other balances will be Suspended.
All accounts that are “Suspended” will be frozen and will not accumulate future commissions (including mining earnings). And if the account is suspended for longer than 12 months it will be deleted and all records purged from the system.
So please make sure you check your account and if you have a negative balance all you have to do is make a deposit in either BTC or BCH and our script will automatically reconcile your negative balances.
BCH SV Coins Now Available
For those members who had a pending withdrawal during the BCH fork that resulted in the new BCHSV token, you have just been credited with your BCHSV. You will see an alert in your account that will show you how to claim them.
We will not be supporting BCHSV wallets so you will need to convert to BCHABC. All you have to do is click the button to convert your tokens and you will see them show up in your wallet.
As we mentioned we will no longer support any forks so if you would like to reap the benefits of a forked coin you will need to withdraw the coins from your wallet 48 hours before the planned fork to be safe.
Bitcoin Gold – Not Supported!
Originally we planned to support the Bitcoin Gold tokens when they forked on October 24, 2017. However, due to a lack of support for their blockchain and some big security issues in claiming these tokens we never got comfortable splitting our own wallets so no coins have ever been claimed.
This means we will NOT be offering any BTG tokens to members who had BTC balances at the time of fork.
Bitcoin has forked many times in the past few years and most of the forked coins are simply not worth jeopardizing private keys in order to claim the forked tokens. We have seen Bitcoin Gold, Bitcoin Silver, Bitcoin Diamond, Bitcoin Private, and other from Bitcoin Cash that has spun off. We have never claimed any of these tokens with the exception of the original Bitcoin Cash (BCH).
We are now taking the hard stance that we will NEVER support any forks in the future and the main reason is due to our invoicing and mining wallets need to stay secure and they are not worth exposing the private keys to claim them. We would have to destroy the wallet and this would cause our pool and our deposit systems and everything else more hassle than its worth…
We hope you understand this decision and again if you want forked coins in the future just don’t keep them inside your BCN virtual wallet.
Founder 1 & 2 Bonuses Paid
We want to apologize to all Founder 1 and Founder 2 members for not paying the lifetime Founder Pool bonuses on the mining revenue for a while. Calculating this proved to be difficult during the past year with all that has gone on in mining, but now this has been paid all the way up through May 2019
Moving forward we are going to pay this on a more regular basis so you can expect to receive these commissions every month or perhaps every two months depending on the market in the future. Either way, we will always catch you up and pay them as promised.
This should add a nice boost to your wallet balances if you are a Founder 1 or Founder 2 member
Mining Pool “Pause” Feature
As you may have noticed we put a pause feature in place on all mining contracts that you have control over. This feature was put in place because the mining earnings are currently at an all-time low on a per share basis and we wanted to give each account full control over the lifetime of their contract.
With this feature, all you have to do is go to your mining pool payments page and you can pause Pool 1, Pool 2, or Pool 3 depending on the shares you have. Please note that once a share is paused, it will take 1 day for the new setting to take effect. You may select ‘Activate Pool’ within that time period without losing any earnings.
Additionally, your mining contract days will stop counting down upon clicking “Pause”, and resume after 1 day when you click “Activate”.
The idea here is that mining may be more profitable in the future and it could benefit you by pausing now and extending your days in the future. Of course, we don’t know where the industry is heading so this is pure speculation on your part whether you want to pause the shares or keep them active.
You can always unpause and pause at your discretion. If you pause your shares and forget about them they will automatically unpause after 90 days and begin paying again so please keep that in mind.
GPU Mining Status
Unfortunately, our GPU mining operation does not look good right now. With the fall of Ethereum from $1,200 USD down to $100 USD and the mining rewards being cut from 5 ETH to 3 ETH we had to turn off all of our machines that were no longer profitable to run.
If the market had bounced back quickly we could have continued to mine but since it stayed low and continues to stay low we are in very bad shape to ever turn a profit with our current situation.
Most of our machines are located in China and the mining market in China has taken a drastic turn since we began deployment. We currently have around 80 MW of GPU mining equipment that is sitting cold and collecting dust.
The power price was jacked up to over 10 cents and with the tax and operational cost, it does not make sense to have these machines running. Unfortunately, we cannot ship them out of the facility because they are under contract and being held and up until the contract is fulfilled.
So at this time we either need the price of Ethereum to skyrocket, or we need a new coin to hit the market that is GPU mineable in order for these machines to be turned back on.
As we mentioned in some previous updates we are looking heavily into AI, rendering, and many other use cases for these GPU’s but this market has been hard to crack into and it’s highly competitive.
We have a few test clients and continue to work on the software to help clients “rent” this power however we don’t have the ability to execute on a massive scale right now.
Furthermore, there are new GPU cards hitting the market, ASIC chips, and other technology that are being used on these GPU minable coins which are starting to make our machines less valuable. We basically have a small window right now to figure something out and we are working daily on this.
We are sorry we don’t have better news on this situation, we will continue to look for ways to salvage the GPU pool and provide updates when we have them.
BC Trader Update
We are working on a new refresh for the BC Trader platform that we are very excited about!
After a few months of using the product, we’ve seen some mixed feedback from our members. At first, the product was working great and everyone seemed to be getting really solid results.
However, as more members began using the platform the better algorithms filled up too fast and in many cases, the trader would not trade very often because the volume was not there. Also, when the market shifted from a bear market into a bull market we noticed some accounts were not performing like they should have as they were stuck trading back and forth and not holding for the run-up.
Basically, if you are a trader and you are actively trading on a daily basis this product has been great! There are many advanced algorithms you can select from and we have seen many members make large gains as they take advantage of the hot market indicators and pay attention.
However, for most people who are not traders and who only log in once a week, we have seen slower results or in some cases very poor results based on the strategy selected.
We have collected A LOT of great data from when we first deployed this product and we are getting ready to launch a new refreshed version with a better interface that allows you to see how your account is performing and select overall strategies that will help you.
Our goal is to make this more of a passive winner so when you log in you know exactly what is happening and you can watch your strategy go to work.
Please be patient with us as we get ready to launch this refreshed version in the coming weeks. Especially with the future of mining being uncertain we are going to focus heavily on BC Trader and we are excited to show you what we have been working on
BC Premier Shutdown
We have decided not to launch BC Premier to the rest of the membership. If you purchased BC Premier you will be given a full refund sometime in June and your account will be turned off.
After testing it with our Mega and Monster Builders first, the feedback was not great and ultimately our vision of what BC Premier was supposed to be and what the end product ended up being was very different.
The product itself is very good and it does have a lot of value. However, the service is not geared toward our biggest markets and we were unable to secure debit cards for Korea and Japan and some of the main markets we operate in.
Also, the concierge service was great for Europe and for the US market but since we don’t operate in the US market there wasn’t a lot of value for the rest of the world so we decided to stop it.
We still believe a debit card solution can be HUGE and we are actively looking for another bank and debit card provider because when done correctly the can be our most valuable product.
Please keep your eye out for news regarding this new debit card program.
-BCN Support Team