Hong-Kong based Bitcoin exchange MyCoin has mysteriously vanished from the internet, following a new recruitment drive in December to bring in more investors.
The exchange had HK$3 billion ($386 million USD) held for 3,000 investors, but in December set a new rule forcing investors to find new clients or have their Bitcoin withheld.
MyCoin also pushed a new recruitment drive, offering new investors a Mercedes-Benz when they invested, an obvious scam that showed the desperation of the company.
Investors could remove their Bitcoin earnings, but would be given 10 times less than the current market value. This is when investors started to realise the deal with MyCoin, but it was already too late.
One investor, an 81-year old Ms. Chan, invested HK$400,000 ($51,590) in the program after her estate agent promised double the investment in just one year. Ms. Chan says she was foolish to believe in the investment, but now has nothing to take home.
A prominent lawyer in Hong-Kong claims due to the lack of paperwork, there is currently no official information stating the investors had any shares in Bitcoin.
Due to the lack of regulation and security surrounding Bitcoin, it is unlikely MyCoin owners will be found, and even if they are it is unlikely all of the money will be given back to investors.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
People should have seen BitCoin as a liability from the start. Imaginary money, handled by imaginary banks.
ReplyDelete