Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:


  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

Report: Hong Kong Bitcoin exchange disappears with 254 million

Published by Business Insider on Mon, 09 Feb 2015

A Hong Kong Bitcoin exchange has allegedly shut its doors with as much as 254 million ($386 million) of investors' funds missing, according to a report from CoinDesk.MyCoin offered clients to invest in a contract that would provide a HK$1 million return (84,823) on a HK$400,000 (33,929) investment, and even, asthe South China Morning Post says,offered additional prizes of Mercedes-Benz cars or cash if investors recruited others.However, there are now fears that MyCoin operated a pyramid or "ponzi scheme," which later paid investments out to early clients to create ' illegally ' the illusion that the company was seeing huge returns. One client said she was "told by those at higher tiers [of the scheme] that we can get our money back if we find new clients." Tech In Asia is already labelling MyCoin a "pyramid scheme" and a "scam."The company's offices have been closed for over a month for "renovation," and fears are now mounting that the funds are gone for good. Customers did not have any written records of their investments beyond accounts on the website, making any potential criminal investigation difficult. Some reportedly took out mortgages in order to invest as much as HK$50 million ' 4,274,815.Bitcoin's troubled trading historyBitcoin's history has been punctuated with scams and failed exchanges. Most famously, Tokyo exchange Mt. Gox shuttered in early 2014 with around $450 million (at then current prices) in Bitcoin missing. More recently, hackers stole $5 million from UK exchange BitStamp.However, Hong Kong Bitcoin entrepreneur Aurlian Menant told Tech In Asia that MyCoin is more similar to classic scams than previous sophisticated Bitcoin hacks."MyCoin was offering its customers to invest in mining contracts, promising them 300 percent year-on-year profits," he said. "It is really a basic case of Ponzi scheme, exactly like what Madoff had done for years in the US with more classical investments... Investors were supposed to buy shares in mining rigs, and therefore get a proportional share of the returns."The overall figure $387 million figure comes from the South China Morning Post. The paper calculated it based on a previous statement by MyCoin. The exchange had claimed it had 3,000 clients who had invested on average HK$1 million.Business Insider has reached out to MyCoin for comment and will update if we hear back.Join the conversation about this storyNOW WATCH: A 13-Year-Old Made A Revolutionary Invention Out Of Legos And Now Intel Is Investing In His Company
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Nigerian Tenders  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs