Bitcoin ponzi Mycoin in China goes bust!~ 500 mil.$ lost. Prepare for a crash!

[fonzie]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever. With all the chinese money disappearing Bitcoin will probably crash to ~50$ according to financial bitcoin experts.  

[Remember remember the 5th of November]

Can't believe this happens again.. Hopefully the report is fake.

[Madness]

Lel , only difference between Mtgox and those I guess that those people are dumb . How they can simply dissapear with the money and hope they won't get catched . even if the goverment have no proof or evidence that those people own the Bitcoins  they should be afraid . They had to play it smart , even smarter then "We got hacked , bye bye " .

~ Madness

[pawel7777]

site seems up atm:

https://www.mycoin.hk/

Hope it's a false alarm...

[manfred]

In the past several Hong Kong exchanges have run away with costomer funds  (GBL, 796, mycoin, ANX.....),
basicaly anyone dealing with a hong kong registered exchange deserves to get goxed

[camolist]

an exchange no one has heard of has 500 million of the 3 billion dollar market cap

someone ban the troll / scamming OP for posting this shit

[leopard2]

oh NO!! China ban Bitcoin!! Sell, sell, sell!!! Fonzie is right:

http://imgur.com/a/KDwtE

...btw nobody banned USD when the Maddoff ponzi collapsed 

[Grand_Voyageur]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever. With all the chinese money disappearing Bitcoin will probably crash to ~50$ according to financial bitcoin experts.  

500 US$ million is more than 2 BTC million at actual price. I remember MtGox scammed only 850k BTC but at the price of the time it was 450 US$ million so quite similar in value. Not sure how to rate impact since MtGox affected more adopters than this Hong Kongese 'exchange' (it apparently affected only 30 people).

[mayax]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever. With all the chinese money disappearing Bitcoin will probably crash to ~50$ according to financial bitcoin experts.  

500 US$ million is more than 2 BTC million at actual price. I remember MtGox scammed only 850k BTC but at the price of the time it was 450 US$ million so quite similar in value. Not sure how to rate impact since MtGox affected more adopters than this Hong Kongese 'exchange' (it apparently affected only 30 people).

30 people with over 10 mil each lost but I am sure there are MANY others

Bitstamp is losing its bank account, another exchange "hacked"...bad news for BTC

[redsn0w]

500 mln of dollars  , that is insane. Another big scam, another story for the bitcoin eco-system.... but  we are always here.

[unlock.mk]

Site is up and price is stable on other exchanges. around 222$, seems like false alarm. But everything is possible

[Denker]

C'mon please! $500 million in an HK exchange almost nobody knows?! Ridicolous! OP tries to make panic!

[Madness]

Can't you guys read the whole topic and stop accusing the OP for trolling and spamming or whatever please ?
As you can see , he is not sure if the topic is correct or not .

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever.

[Denker]

Can't you guys read the whole topic and stop accusing the OP for trolling and spamming or whatever please ?
As you can see , he is not sure if the topic is correct or not .

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever.

OP is a typical bear! That is no.1! No.2 is when he doesn't know for sure why is he writing it as being sure in the title?
He tries to panic!

[newIndia]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever. With all the chinese money disappearing Bitcoin will probably crash to ~50$ according to financial bitcoin experts.  

Can someone please get an english news source of this story or someone from China can actually say the real story. This is appearing fake for multiple reasons...

[CrackedLogic]

Wait, so this drastic price drop isn't a crash?  Great.
Tbh I wouldn't mind a price drop to $50, I'd actually step in and fill my pockets if not hard drives.

[jl2012]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

If this turns out to be true then China or the PBOC will probably ban Bitcoin in China once and forever. With all the chinese money disappearing Bitcoin will probably crash to ~50$ according to financial bitcoin experts.  

Can someone please get an english news source of this story or someone from China can actually say the real story. This is appearing fake for multiple reasons...

It's a Ponzi involving some kind of mining contract. The scammer said they would pay 0.64BTC of interest per day for every 90BTC investment.

By the way, they claim 3 billion HKD, not CNY. But this 3 billion HKD is pulled out of their ass. Only 30 victims seek help and they claims loss of 1 million HKD on average. The legislative councillor speculates that there are 3000 victims and ALL OF THEM lost 1 million HKD. That's how the 3 billion HKD calculated.

[hhanh00]

It's in the news here (in HK). But my wife is sleeping (2 am) and I don't understand Chinese.

[sakira]

Can't believe this happens again.. Hopefully the report is fake.

yeahh not going to happen again so soon, if it means that the security is very weak.

hopefully these false alarms = HOAX

[BitCoinNutJob]

"Mycoin.hk", a bitcoin thing in Hong Kong,

A bitcoin thing? sounds like probably nothing and someone trying to cause a crash, ive never heard of this site.