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

[readysalted89]

Here is an msn page about it, but it's lost much through Google translation, and the original source is a Hong Kong website. I cannot find any decent pages about it in English yet.

http://translate.google.co.uk/translate?hl=en&sl=zh-TW&u=http://www.msn.com/zh-hk/news/national/%25E8%258B%25A6%25E4%25B8%25BB%25E6%258C%2587%25E5%25B8%25AB%25E7%2588%25BA%25E6%2593%2585%25E8%2587%25AA%25E8%25B3%25BC%25E5%2585%25A5130%25E8%2590%25AC%25E5%2585%2583%25E6%25AF%2594%25E7%2589%25B9%25E5%25B9%25A3/ar-AA97xIx&prev=search

[BitCoinNutJob]

The market hasnt moved one bit in hours so im not buying it as important news, it probably happened but not that much of a big deal.

[LiteCoinGuy]

you are goxxed!

[fonzie]

The market hasnt moved one bit in hours so im not buying it as important news, it probably happened but not that much of a big deal.

Well i guess for the victims it is kind of a big deal...

[readysalted89]

The market hasnt moved one bit in hours so im not buying it as important news, it probably happened but not that much of a big deal.

I had never heard of them until now, but I don't usually check out the Chinese exchanges. I put their site through Google translate and it appears to be a combination of exchange, cloud mining, online wallet, games, etc.

[CtrlAltBernanke420]

"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.  

Shit like this if true, could also help dry up supply causing the price to skyrocket… Its supply and demand, not moral ethical happenings or lack there of that drive the price.

[mitus-2]

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

something surely happened but they pumped the numbers

[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.  

Shit like this if true, could also help dry up supply causing the price to skyrocket… Its supply and demand, not moral ethical happenings or lack there of that drive the price.

Just like the 800k missing coins from MtGox helped the price skyrocketing...

[picolo]

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

It is a report from someone shorting the market

Bitcoin is massively own by Americans which it could be a problem for other countries.

[redsn0w]

"The HK$3 billion figure is based on an earlier statement by the company that it had 3,000 clients in Hong Kong, each investing an average HK$1 million."

and

"Investors said they were lured by promises of a HK$1 million return in four months for buying a HK$400,000 bitcoin contract which would produce 90 bitcoins on maturity. Extra profits and prizes such as a Mercedes car or cash prizes would be paid if an investor found more new clients."

more at : http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company

[BTCreward]

If this mycoin.hk exchange is on the caliber of Mtgox before it went down, they why haven't we seen it mentioned a lot? Bitfinex is based in Taiwan, which gets referenced all the time.

This is a good point. If it had that much bitcoin worth of customer funds then it would likely have sufficient trading volume so that it would be a highly cited/known exchange. To put things in perspective, assuming an exchange rate of $250 (significantly higher then bitcoin is trading at now) then it would mean they ran away with 2 million BTC, gox on the other hand was by far the largest exchange and only had ~800k BTC of customer funds.

Does anyone really believe that an exchange with ~2.5x the amount of deposits as gox is really unknown to most of the bitcoin community?

However to be fair, I would not be surprised if we see a number of Chinese exchanges "disappear" with customer funds, although the amount lost will probably not be quite as large. It would also be possible that this exchange really did run away with customer money but the amount stolen is significantly less.

[BTCreward]

"The HK$3 billion figure is based on an earlier statement by the company that it had 3,000 clients in Hong Kong, each investing an average HK$1 million."

and

"Investors said they were lured by promises of a HK$1 million return in four months for buying a HK$400,000 bitcoin contract which would produce 90 bitcoins on maturity. Extra profits and prizes such as a Mercedes car or cash prizes would be paid if an investor found more new clients."

more at : http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company

So they were a ponzi then. Anyone who "invests" money with the understanding they will get 2.5x the amount of money back in four months is asking to get their money stolen from them

[redsn0w]

"The HK$3 billion figure is based on an earlier statement by the company that it had 3,000 clients in Hong Kong, each investing an average HK$1 million."

and

"Investors said they were lured by promises of a HK$1 million return in four months for buying a HK$400,000 bitcoin contract which would produce 90 bitcoins on maturity. Extra profits and prizes such as a Mercedes car or cash prizes would be paid if an investor found more new clients."

more at : http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company

So they were a ponzi then. Anyone who "invests" money with the understanding they will get 2.5x the amount of money back in four months is asking to get their money stolen from them

Yes I think it was also a ponzi scheme, and not only a normal "exchange". However maybe it is better to wait more news regarding the fact.

[fonzie]

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

Op is lying

Yeah I already mentioned that he might trie to panic here! He is a typical bear! You just have to check his posts.

Once again bull scammers tried to betray everyone by denying the truth. Be careful with any advices of these three people above. They are just trying to unload their bags @ higher prices, waiting for the next bigger fool to buy them out, just like dozens of other bull scammers on this board!

[fonzie]

Seen enough trolling over the years, and if its not on coindesk, i dont believe it.
Bitcoin probably will go under 200$, but not because of false news hoaxes :]

Once again so called BTC news sites (bull scammers) like coindesk just don´t write anything about it.
But you could expect huge headlines if another hot dog shop in Mexico would accept Bitcoin.

[Velkro]

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

Agree, no way that its true
Fake spam

We will see in couple days truth.

[aztecminer]

"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.

a mining contract scam probably isnt gonna crash bitcoin any more than an asic manufacture scam would crash bitcoin .

[Bit_Happy]

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

Agreed, OP should be banned for repeatedly trying to spread untrue FUD.

Edit: The English version could simply be picking up on the fake news. Either way Fonzie is a perma-bear with a shady reputation.

[pawel7777]

Once again bull scammers tried to betray everyone by denying the truth. Be careful with any advices of these three people above. They are just trying to unload their bags @ higher prices, waiting for the next bigger fool to buy them out, just like dozens of other bull scammers on this board!

Lol, why didn't you include a link to the article? Here it is:

http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company

According to it, Mycoin was just another investment ponzi, not a trading platform. Probably they didn't deal with a single satoshi, just used "bitcoin" as a lure (explain potential unrealistic ROI).

Have you ever asked yourself a question how's it possible that 'exchange', that no one heard about, is dealing with 1/6th of total market cap?

HK$3 billion is based on info from Mycoin, so probably the real figure is much smaller.

This tells everything about that 'exchange':

Investors said they were lured by promises of a HK$1 million return in four months for buying a HK$400,000 bitcoin contract which would produce 90 bitcoins on maturity. Extra profits and prizes such as a Mercedes car or cash prizes would be paid if an investor found more new clients.

[fonzie]

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

Agreed, OP should be banned for repeatedly trying to spread untrue FUD.

Are you stupid? Can you even read? Do you think all those articles are made up? Did the bitcoin bearmarket destroy your brain, or are you just another typical bull scammer who is trying to discredit everyone and everything telling the truth?