I was originally pissed that I was being refund in USD, instead of BTC but I finally agreed as I wanted my money back. For weeks they assured me that it was coming and now they have gone completely. Phone number disconnected and everything. There are reports on btc-e of others being scammed as well. I think the issue is wide spread. I am glad the owners are well known, it will make the police report tomorrow very easy to track them down.
Do not make orders with kncminer, if you do, cancel it now! A lot of people I know are not ordering from them anymore. Don't lose thousands like I have.