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Hong Kong-based Bitcoin exchange MyCoin.hk is reported to have gone bankrupt, taking away US$390 million worth investors’ funds with it.
According to The South China Morning Post, the lost money belongs to a total of 3,000 exploited MyCoin customers who all were promised double returns in over a year. One of the victims, surnamed Lau, told the newspaper that they were asked by the higher tiers of the scheme to bring more customers if they need the money back. Her statements clearly explained MyCoin was a pyramid-structured Ponzi company.
Other investors shared Lau’s statement and further described MyCoin’s deceptive roadmap to media. As per the reports, they all were asked to invest around $400,000 for buying a Bitcoin bond which was promised to fruit a HK$1 million return in four months. The verbal contract further promised to add 90 more Bitcoin to the deal once it hits maturity. Other amenities promised to investors were cash prizes and a Mercedes Benz if they bring in more customers to MyCoin.
The company meanwhile also staged posh events at Hong Kong’s five star hotels to establish its stand before investors.
Another local woman, surnamed Chan, shared her awful experience with MyCoin, saying she recovered only HK$1.2 million off her HK$3 million investment. Reportedly, the 82-year old even mortgaged her property to continue with her investment plans.
After MyCoin disappeared with the investors’ funds, the fooled customers all approached lawmaker Leung Yiu-chung for legal help, and are now planning to submit their statements to Hong Kong police this Wednesday.
Councilor Leung meanwhile is planning a one-to-one with Hong Kong’s Monetary Authority to discuss the protection of Bitcoin investors.
Source: The South China Morning Post
Images from Big Stock Photo.
Ernie 
Jabber0ne 
Neal Palmquist 
Another ‘Get Rich Quick’ Dream explodes into Nothing. Another 3’000 idiots find themselfs confronted with nothing but reality.
I don’t even feel sorry with one of them, they just expected to make a fortune on speculation, the main reason, why Bitcoin cannnot suceed under such circumstances.
Wow, $400,000 bond for $1 million return in 4 months. Sounds Ponzi fishy to me. Sadly that so many rich people buy into this hupla.
Bitcoin is not a ponzi because we knew the identity of Ponzi. We don’t know the identity of Shatoshi because that Newsweek article was wrong. So can anybody explain to me how bitcoin is a ponzi? Simple research will show anybody that it is not a ponzi. Just changing over from calling bitcoin from “ponzi” to now calling it a “pyramid scheme” doesn’t change anything.