Black Hawk Mines Online Games Online gaming company settles $1M Bitcoin fraud case
The digital currency was unveiled in 2009 by an unidentified programmer, or group of programmers. Supply is capped at 21 million Bitcoins and managed by a software algorithm embedded into the digital currency’s design, rather than a monetary authority such as a central bank.
NEWARK, N.J. – An online video game company accused of infecting thousands of computers with malicious software and using that access to illegally mine for the electronic currency Bitcoin has agreed to pay a $1 million settlement, the New Jersey attorney general’s office said Tuesday.
Acting Attorney General John J. Hoffman announced the settlement with E-Sports Entertainment, which bills itself as the “largest competitive video gaming community in North America,” according to court documents.
The company charges users $6.95 a month to play popular games including Counter Strike and Team Fortress 2 alone or against one another on what they said is a platform that does not allow cheating.