Used Seagate drives sold as new traced back to crypto mining farms

Used Seagate HDDs sold as new, linked to Chinese crypto farms, causing global fraud concerns.

: A scandal has arisen where used Seagate hard drives, previously utilized in cryptocurrency mining farms, were sold falsely as new. Many drives had significant prior usage, masked to appear unused. The issue affects over 200 cases globally, with many retailers unknowingly involved. Seagate is investigating, urging reports to fraud@seagate.com.

A major scandal has developed surrounding the sale of used Seagate hard drives as new, with origins traced back to Chinese cryptocurrency mining farms. The affected drives recorded usage between 15,000 and 50,000 hours before they were tampered with to appear unused in the retail supply chain.

The fraudulent activity was initially noticed in January, with over 200 cases reported worldwide, across Europe, Australia, Thailand, and Japan. Seagate claims these products bypassed official distribution channels, raising serious concerns about the security of the supply chain for retailers and consumers alike.

To counteract the issue, impacted retailers are offering refunds or exchanges, while some demand verification of the faulty drives. Seagate has started an internal investigation and is working with retailers and law enforcement to track and address the fraudulent resellers involved.

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