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Topic: Hong Kong's MyCoin Disappears With Up To $387 Million, Reports Claim (Read 2364 times)

hero member
Activity: 602
Merit: 500

well the sad part of the article is: The Morning Post reported those arrested have not been charged with any crimes

IMO they're going to walk away as if nothing happened.
legendary
Activity: 1456
Merit: 1004
nothing new.someone had a ponzi and ran with the money Smiley
legendary
Activity: 1778
Merit: 1042
#Free market
The New York times article about the situation :

||"Hong Kong’s central bank has warned against investing in virtual currencies, amid local media reports that a Bitcoin exchange may have run off with $387 million in client funds in what could be the biggest Bitcoin scandal after last year’s bankruptcy at the Mt. Gox exchange, based in Tokyo."

and

The Hong Kong Monetary Authority said in a statement late Monday that the case “may involve fraud or pyramid schemes,” adding: “Given the highly speculative nature of Bitcoin, we have all along urged the public to exercise extra caution when considering making transactions or investments with Bitcoin.”||



http://www.nytimes.com/2015/02/11/business/international/hong-kong-issues-warning-about-bitcoin.html?_r=2
legendary
Activity: 1778
Merit: 1042
#Free market
An interesting article also on cryptoArticles.com :

"Original sources report that Mycoin.hk has been involved in some sort of mining contract ponzi scheme-esque deal, where users are promised a daily 0.64 Bitcoin payout after they make a massive upfront investment. It has to be said however that there are conflicting reports out there in regards to how much money has officially been stolen by Mycoin.hk."

http://www.cryptoarticles.com/crypto-news/mycoinhk-packages-fiat-currency-ponzi-scheme-as-guaranteed-bitcoin-payout
legendary
Activity: 1008
Merit: 1001
In Cryptography We Trust
legendary
Activity: 952
Merit: 1003
--Signature Designs-- http://bit.ly/1Pjbx77
The article said it wasn't an exchange, not even a business, it was a ponzi. Not likely to affect bitcoin price at all:

Adding to the mystery are reports the company never operated as a genuine bitcoin business at all. Testimonies from customers describe an operation more like a Ponzi scheme that used the veneer of bitcoin trading as its lure.

Classic ponzi scheme where people can only get their money back by bring in greater fools:

We were told by those at higher tiers [of the scheme] that we can get our money back if we find more new clients.
legendary
Activity: 1750
Merit: 1094
Assalamu Alekum
This news should not affect the price of bitcoin as such.

Firstly this news is not verified yet
Secondly the money was taken from people and never put into btc. The contracts were fake.
They were just making people invest using bitcoin as bait.

Lets see what happens

Regards

Duke
legendary
Activity: 1148
Merit: 1001
Just crazy. Holding your coin on any of these exchanges is risky as hell.
sr. member
Activity: 322
Merit: 250
"$387 Million" is believe to be fake, Mycoin is more than a scam instead of an exchange.
But whatever, another exchange gone and people lost their money.
legendary
Activity: 1736
Merit: 1024
sucks, yet another exchange gone.  Oh well, tbh they weren't really built to last! :-/
hero member
Activity: 854
Merit: 500
Nope..
Waiting for $10 BTC again.  Only way to starve a thief is to devalue his loot.
copper member
Activity: 2870
Merit: 2298
I have my doubts that they had that much in customer funds but they did probably run away with customer money.
BRE
legendary
Activity: 1218
Merit: 1014
Lucky.lat | Marketing Solutions & Implementations
What The Hell  Cry
$150 is near again guys ..... $387 Million will give bad impact for btc price
legendary
Activity: 1330
Merit: 1000
Damnnnnnnn.

There honestly needs to be some type of organization that is able to effectively police cryptocurrency.
legendary
Activity: 1008
Merit: 1001
In Cryptography We Trust
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