According to a report from CoinDesk,As
much as £254 million ($386 million) of investors' funds missing,a Hong Kong bitcoin exchange has allegedly closed the doors with .
MyCoin offered clients to invest into a contract that would provide a HK$1 million return (£84,823) on a HK$400,000 (£33,929) investment and even, South China Morning Post says, also offered additional prizes of Mercedes-Benz cars or cash if investors recruited others.
However, there are now serious fears that MyCoin operated a Manipulated
scheme that later paid investments out to early clients to create {illegally} the illusion that the company was seeing huge returns. One
client said she was "told by those at higher tiers [of the scheme] that
we can get our money back if we find new clients," according to the
South China Morning Post. Tech In Asia is already labelling MyCoin a "pyramid scheme" and a "scam."
The company's offices is now closed after this news got fire,for over a month for "renovation," and fears are now mounting that the funds are gone for good. Customers did not have any written records of their investments beyond accounts on the website, making any potential criminal investigation difficult. Some reportedly took out mortgages to invest as much as HK$50 million — £4,274,815.
MyCoin offered clients to invest into a contract that would provide a HK$1 million return (£84,823) on a HK$400,000 (£33,929) investment and even, South China Morning Post says, also offered additional prizes of Mercedes-Benz cars or cash if investors recruited others.
The company's offices is now closed after this news got fire,for over a month for "renovation," and fears are now mounting that the funds are gone for good. Customers did not have any written records of their investments beyond accounts on the website, making any potential criminal investigation difficult. Some reportedly took out mortgages to invest as much as HK$50 million — £4,274,815.
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