The Chinese newspaper, China Times, has reported that on August 20, 2015, Taiwanese constabulary arrested ii suspects who allegedly scammed investors out of $1 billion NT, equivalent to $30.6 1000000 USD. Lu Kuan-wei as well as Chen Yun-fei were arrested after the Criminal Investigation Bureau inwards Taipei received a set out of complaints about fraud from victims.
Editor’s Note: To endure clear, Mycoin was a ponzi system that fronted every bit a Bitcoin exchange. Additionally, it needs to endure noted that MyCoin is not Maicoin, a legal Taiwanese Bitcoin exchange. In Feb 2015, the Hong Kong Commercial Crime Bureau (CCB) conducted a preliminary investigation into alleged unlawful activities that may accept occurred at MyCoin, a now-defunct Bitcoin exchange. The investigation revealed that 43 investors betwixt the ages of 21 as well as 71 years quondam lost anywhere betwixt $50,000 HK to $15m HK each when the telephone commutation ceased operations.
MyCoin’s Abrupt Shut Down inwards Feb 2015
Kuan-wei as well as Yun-fei accept been charged inwards connector alongside the MyCoin fraud, which resulted government shutting downward the Hong Kong-based telephone commutation in in February. The ii suspects allegedly held several events for MyCoin investors, convincing them to pass $1.62 1000000 NT ($49,600 USD) for ninety bitcoins as well as an line of piece of job organization human relationship alongside Mycoin’s raise company.
As more data regarding the scammers’ modus operandi arises, the to a greater extent than interesting this story becomes. It has come upward to lite that the MyCoin scam resulted in millions of dollars inwards losses in diverse Asian countries, where victims were duped into investing inwards the Bitcoin telephone commutation due to promises of over-sized returns. Reading the text from the China Times, it becomes clear how victims were misled past times the scammers:
“Chen as well as Lu held several events for investors convincing each ane to pass NT$1.62 1000000 (US$49,600) for ninety BTC as well as an line of piece of job organization human relationship alongside MyCoin’s raise company, which would distribute 0.63 of a Bitcoin every 24-hour interval for a total value of NT$11,000 (US$337). The investors were told that their investment would endure returned to them after precisely iv as well as a one-half months.”
Modus Operandi of Mycoin
Mycoin had promised a 150 per centum yield to investors. Even high-end investors brutal for the scam, every bit ane of the aforementioned events took house inwards the grand ballroom of the Sheraton Macao Hotel inwards August of 2014. MyCoin also exploited the wish to larn money out of China — a persuasion shared past times many Chinese citizens; these people were extremely vulnerable to these kinds of Ponzi schemes. According to Mycoin’s document, the scammed people paid a minimum $400,000 HK and were promised $1 1000000 HK a yr later, every bit long every bit Bitcoin’s value remained the same or appreciated. Despite the age-old advice of distrusting things that are likewise practiced to endure true, many Chinese residents, mainly from Guangzhou, Xian, Shanxi, Hebei, as well as Shenzhen, brutal to the trap. MyCoin attracted an estimated 3,000 people from Hong Kong as well as Shenzhen past times organizing swanky conventions as well as promotional dinners inwards China, Thailand, South Korea, the Philippines, as well as Taiwan. In a curt bridge of time, MyCoin succeeded inwards drawing inwards professionals every bit clients, such every bit insurance brokers, existent estate agents, as well as paralegals.
Warning Call: Stay Away from MyCoin-Type Ponzi Schemes
When Hong Kong lawmakers banned the operations of Mycoin, it was all the same a novel illustration as well as non many had idea that the trail of Ponzi schemers would be as well as then long. MyCoin did not genuinely sell its backers on trading accounts. Instead, the exchange offered a shape of equity investment it described as “Bitcoin contracts,” where the marks were promised a 100% provide inside iv months. The operators also offered some bonuses that included Mercedes-Benz automobiles as well as cash prizes for successfully recruiting novel participants. Interestingly, similar whatever Multi-level Marketing scheme, the investors were prohibited from divesting themselves unless they brought inwards novel investors to supervene upon themselves. Soon after Mycoin was busted, the government asked for ban on virtual currencies; according to them, it was non but plenty to enquire people to exercise caution when investing. However, rather than banning cryptocurrencies, the Hong Kong Monetary Authority urged consumers to rest vigilant as well as guard against unscrupulous practices inwards whatever investment activity.
Now that ii primary defendant accept been charged as well as arrested, the scammed victims may larn some relief as well as justice.
What do yous intend near this latest evolution inwards the MyCoin saga? Let us know inwards the comments below!
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