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

[fonzie]

This is the article of coindesk :

"Reports are emerging from Hong Kong that local bitcoin exchange MyCoin has shut its doors, taking with it possibly as much as HK$3bn ($386.9m) in investor funds.

If true, the supposed losses are a staggering amount, although this estimate is based on the company's own earlier claims that it served 3,000 clients who had invested HK$1m ($12,890) each."



http://www.coindesk.com/hong-kong-exchange-mycoin-disappears-387m-reports-claim/

So it really happened ?
China are good in banning stuff (Google , Gmail etc ...) , now they will block the whole Bitcoin and R.I.P Price , It will probably affect a lot on Bitcoin price since they have a lot of users there (I guess .. since they 1 billion citizens)

~ Madness

New "regulations"( Total bans) will probably be introduced by the PBOC in the next 2-3 weeks, maybe earlier. We´ll see.

[pawel7777]

So it really happened ?
...

Yes, but probably it's not even bitcoin related. From coindesk article:

Ponzi scheme suspected

Adding to the mystery are reports the company never operated as a genuine bitcoin business at all. Testimonies from customers describe an operation more like a Ponzi scheme that used the veneer of bitcoin trading as its lure.

So basically they just targeted a group of wealthy but gullible older people to make them 'invest' in the ponzi. They had to give them some bullshit explanation on how they're going to make them such unrealistic ROI, so they just used "Bitcoin" for that.

[countryfree]

Topic's title needs to be changed. This is not about an exchange like MtGox but a company which was selling dubious investments, ponzi-like somehow related to BTC.

[dsly]

Topic's title needs to be changed. This is not about an exchange like MtGox but a company which was selling dubious investments, ponzi-like somehow related to BTC.

The op seems to be anti-bitcoin. He is directing it exactly like what serves his purpose.

[redsn0w]

Topic's title needs to be changed. This is not about an exchange like MtGox but a company which was selling dubious investments, ponzi-like somehow related to BTC.

The op seems to be anti-bitcoin. He is directing it exactly like what serves his purpose.

Maybe you are right , or maybe  he only wants to buy some cheap bitcoin (I don't know).

[o0‡0o]

in the bitcoin world you know straight away who is short or long on any given time.

[finnile]

Topic's title needs to be changed. This is not about an exchange like MtGox but a company which was selling dubious investments, ponzi-like somehow related to BTC.

The op seems to be anti-bitcoin. He is directing it exactly like what serves his purpose.

Maybe you are right , or maybe  he only wants to buy some cheap bitcoin (I don't know).

he is actually right. it seems op has also been fuding on the speculation thread,

[Gatekeeper]

this has nothing to do with bitcoin other than they used it's name in their pitch. In previous years it always seemed like Forex trading was the popular ponzi line, saying they are experienced Forex traders to try to hook people in. Forex was the ideal thing to use as it's volatile, so now it seems that one of them chose Bitcoin as a way to try to explain how they give unrealistic returns.

This was a FIAT ponzi and nothing to do with bitcoin, OP is just a FUD troll and has no clue what he's talking about. People were investing $1m HK not BTC, it' really very simple. The company never did anything with bitcoin, they just took the money and ran.

[redsn0w]

This is the article on Finance.yahoo.com:

Leung Yiu-chung said his office recently received reports from dozens of investors in Hong Kong who paid a total of HK$40 million ($5.16 million) into the scheme run online by MyCoin, but the total loss may be vastly more.

"The number of cases is increasing. These two days I received calls about more than 30 cases. We estimate more than 3,000 people and HK$3 billion are involved," he told AFP.



https://finance.yahoo.com/news/alleged-bitcoin-scam-leaves-millions-missing-132209213.html

[fonzie]

This is the article on Finance.yahoo.com:

Leung Yiu-chung said his office recently received reports from dozens of investors in Hong Kong who paid a total of HK$40 million ($5.16 million) into the scheme run online by MyCoin, but the total loss may be vastly more.

"The number of cases is increasing. These two days I received calls about more than 30 cases. We estimate more than 3,000 people and HK$3 billion are involved," he told AFP.



https://finance.yahoo.com/news/alleged-bitcoin-scam-leaves-millions-missing-132209213.html

  Impressive

Thanks, for the update!

[btcshiner]

This is no where near the scale of MT. GOX.  The articles say the operators were promising returns of 200-300% annually.  Some sort of bitcoin derivative.  BUt I don't think they actually did anything but use Bitcoin as a marketing "phrase" and bring in new investors.

[countryfree]

That Mycoin company was using the BTC aura to serve its own interest, it could as well have promised some anti-aging medicine. The only goal was to lure naive investors of a huge return. BTC should not crash because of this.

[fonzie]

That Mycoin company was using the BTC aura to serve its own interest, it could as well have promised some anti-aging medicine. The only goal was to lure naive investors of a huge return. BTC should not crash because of this.

It will probably trigger new and tighter regulations in China. Also a lot of new potential BTC buyers in China might turn away from Bitcoin due to the news and think twice about puttin money into BTC. The name BTC will now, more than before, be linked to a ponzi in the mind of the chinese, which results in less demand for BTC at real exchanges. Therefore price will probably go down more, altough not in a flash crash.

[Bit_Happy]

That Mycoin company was using the BTC aura to serve its own interest, it could as well have promised some anti-aging medicine. The only goal was to lure naive investors of a huge return. BTC should not crash because of this.

It will probably trigger new and tighter regulations in China. Also a lot of new potential BTC buyers in China might turn away from Bitcoin due to the news and think twice about puttin money into BTC. The name BTC will now, more than before, be linked to a ponzi in the mind of the chinese, which results in less demand for BTC at real exchanges. Therefore price will probably go down more, altough not in a flash crash.

"The name BTC will now, more than before, be linked to a ponzi in the mind of the chinese..."

1) The Chinese still remember Bernie Madoff, and this, more than before, links the USD to a huge Ponzi.
2) This fact will contribute to crashing the Dollar much worse than you can ever imagine.
3) Bitcoin/USD will have an amazing rally, but keep an eye on btc/Gold since that will bring real gains, while your paper profits will be almost worthless.

[Cluster2k]

I would bet no actual bitcoins have been lost or made their way into criminal hands.  What we're looking at here is a good old fashioned pyramid scheme that attracted suckers because they slapped bitcoin on the box.

It does harm the reputation of bitcoin as more people will now associate "bitcoin" with "scam" and it may attract unwelcome Chinese government regulation, but no, this is not a Gox event.  Yes, there are plenty of scams involving yuan, dollars, euros etc.  The problem bitcoin has is the brand is so strongly associated with such problems.

[fonzie]

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

FUD = FACTS U DISLIKE?!

That Mycoin company was using the BTC aura to serve its own interest, it could as well have promised some anti-aging medicine. The only goal was to lure naive investors of a huge return. BTC should not crash because of this.

It will probably trigger new and tighter regulations in China. Also a lot of new potential BTC buyers in China might turn away from Bitcoin due to the news and think twice about puttin money into BTC. The name BTC will now, more than before, be linked to a ponzi in the mind of the chinese, which results in less demand for BTC at real exchanges. Therefore price will probably go down more, altough not in a flash crash.

"The name BTC will now, more than before, be linked to a ponzi in the mind of the chinese..."

1) The Chinese still remember Bernie Madoff, and this, more than before, links the USD to a huge Ponzi.
2) This fact will contribute to crashing the Dollar much worse than you can ever imagine.
3) Bitcoin/USD will have an amazing rally, but keep an eye on btc/Gold since that will bring real gains, while your paper profits will be almost worthless.

Stop embarrassing yourself. I can smell the reek of your butthurt bagholder attitude through my monitor. Cut your losses and get on with life.
Protip: Next time sell earlier.

[Nrcewker]

I think it's not worth talking about it so much

[fonzie]

TAKE THAT BULLTARD SCAMMERS!
All my presumptions are becoming true!

http://www.nytimes.com/2015/02/11/business/international/hong-kong-issues-warning-about-bitcoin.html?_r=2

"HONG KONG — Hong Kong’s central bank has warned against investing in virtual currencies, amid local media reports that a Bitcoin exchange may have run off with $387 million in client funds in what could be the biggest Bitcoin scandal after last year’s bankruptcy at the Mt. Gox exchange, based in Tokyo.

The South China Morning Post reported on Monday that clients of the MyCoin exchange, based in Hong Kong, had approached a local lawmaker, saying the company had absconded with their money. An assistant for Legislative Council member Leung Yiu-chung said that Mr. Leung had received more than 15 complaints from MyCoin clients regarding the allegations and that these would be passed on to the police on Wednesday.

The Hong Kong Monetary Authority said in a statement late Monday that the case “may involve fraud or pyramid schemes,” adding: “Given the highly speculative nature of Bitcoin, we have all along urged the public to exercise extra caution when considering making transactions or investments with Bitcoin.”

Calls to MyCoin in Hong Kong could not be connected. Calls to the company’s China customer service line were not answered.

Bitcoins are created through a “mining” process in which a computer’s resources are used to perform millions of calculations.

Advocates say the virtual currency is revolutionary because it is not controlled by a central bank and has potential as an alternative means of online payment. But the rise of Bitcoin, which is unregulated in many places, including Hong Kong, has stoked concerns that it can be used to launder money and finance extremist groups.

Mt. Gox, once the world’s largest Bitcoin exchange, filed for bankruptcy a year ago after it claimed to have lost about $500 million worth of customer Bitcoins in a hacking attack.

On its website, MyCoin says it is a “leading global Bitcoin trading platform and application service provider,” with a research and development team based in China.

MyCoin promised clients a return of one million Hong Kong dollars, or $128,976, over a four-month period based on a 400,000-dollar investment that would produce 90 bitcoins on maturity, the South China Morning Post reported.

The report added that MyCoin claimed to have 3,000 customers, each investing an average of one million dollars.

The price of a Bitcoin has slumped from a late-2013 high of more than $1,000 to about $220, according to CoinDesk’s price index."

[redsn0w]

Fonzie can you change the title of thread? mycoin wasn't originally an exchange but a ponzi scheme. Thanks.

[fonzie]

Fonzie can you change the title of thread? mycoin wasn't originally an exchange but a ponzi scheme. Thanks.

Ok, if you think it fits better, no problem