A class action lawsuit has been filed against Bitcoin ASIC Manufacture KnC Miner by a group of two dozen people represented by the Swedish Law Firm Advokatfirman Rise & Co AB. Reasons for the lawsuit include late delivery of products, weak results from the products, and claims of customers being sold second-hand machines.

KnC Miner sold ASIC (Application-specific integrated circuit) mining devices, which are computers with customized chips for the sole task of mining Bitcoin. Customers orders for these machines were met with delays and excuses from the company.

When products were delivered, they were sub-par in computing performance than initially advertised. The customers were not refunded their money.

KnC Miner isn't the only ASIC product company with shady operations. In September of 2014, Butterfly Labs was shut down by the FTC due to over 300 complaints accusing the company of delaying shipments and refund payments. After seizing the company's assets, the US Government allowed Butterfly Labs to continue operations near the end of last year.

Meanwhile, a New Jersey police officer was charged with official misconduct and receiving stolen property after selling stolen KnC Miner mining equipment. The officer, Vincent Saggese, met several times with an undercover agent to negotiate a sale of the hot KnC Miner Neptune units, which were valued at several hundred dollars a unit.