TerraHash close and offer clients a 50% refund

It seems there has been another ASIC manufacturer has failed to deliver.

TerraHash originally entered the market on May 8th of this year with the goal to manufacturer the Klondike Open Source Mining Board coupled with Avalon ASIC processors.

TeraHash today announced on BitcoinTalk that "Some events happened last week, that have forced us to make a decision to go out of business."  In the post (quoted below) TerraHash explain that a series of failures lead to this decision.  In particular the hold-up of ASIC ships from Avalon and  the "failure of the Klondike Project".

TheraHash then went onto say that they will be asking for a refund from Avalon for the chips they have ordered and will use that to refund orders to apoximetly 50% of their value.

The announcement was immediately met by hundreds of posts on bitcoin talk by customers of TerraHash asking when they could expect their refunds and why it would only be 50%.

Some events happened last week, that have forced us to make a decision to go out of business. A lot of issues compounded to press us to do this. The failure of the Klondike project was one. Chase, our bank, shut down our accounts. Also the delay in the shipment of the chips has resulted in a lot of customers asking for refund. We already owe a lot of money to PayPal, and with all the refund requests, it is impossible for us to continue our operation profitably. So we have decided to dissolve the company.

We are going to ask for a refund from Yifu. As soon as we get a refund from him, we will start refunding all the orders. We will be able to refund about 50% of every order with this amount. We are trying to get our money out of Chase, which will help us refund another \~5% of each order. We are trying to return as many components as we can, and as soon as we get more money back, we will send additional pro-rated payments to each order.

Once we get a refund from Yifu, we will be sending an email to everyone asking for a current Bitcoin address where to send the payments.

Disclosure: I have no orders with TerraHash.