150 more suspected victims in Hong Kong-based bitcoin MyCoin collapse
Lawmaker says alleged scam tactics among the most sophisticated he has seen in 20 years as HKMA warns public to invest with caution
PUBLISHED : Thursday, 12 March, 2015, 1:28am
UPDATED : Thursday, 12 March, 2015, 1:28am
Timmy Sung [email protected]
Democratic Party legislator James To (left) accompanies Ma to police headquarters in Wan Chai yesterday. Photo: David Wong
Another 150 people are reported to have fallen prey to an alleged scam relating to the collapsed Hong Kong-based bitcoin trading platform MyCoin - involving an estimated HK$100 million.
The latest victims emerged on Wednesday after Democratic Party legislator James To Kun-sun, accompanied by 23 victims, reported the situation to police, saying the syndicate had used "sophisticated" ways to lure money.
Some 60 Hong Kong residents and 90 non-locals, mostly from the mainland and Taiwan, have been seeking help from To since early last month - several days before fellow legislator Leung Yiu-chung brought the alleged scam to light.
One of the mainlanders reporting to be a victim on Wednesday said he had invested HK$800,000 after attending a conference in Macau on the virtual currency - which has soared in popularity in recent years, but also been at the centre of a string of controversies - last August.
The man, who gave his surname as Ma, said he didn't suspect anything as he had previously attended a MyCoin event featuring international investment guru Jim Rogers, and celebrities such as singer Wu Bai had performed at such events.
But Ma said that when he couldn't log in to the trading platform in February, he feared he had been cheated.
Ms Lau, one of the victims of the alleged bitcoin scam, meets the press with Lawmaker Leung Yiu-chung will file reports to police with about 30 clients of Hong Kong-based Bitcoin trading platform MyCoin. Photo: David Wong
The victims were told that for every 90 bitcoins they bought through MyCoin, they would receive 219 a year later - more than double their return.
To said: "The packaging is very intelligent, colourful and authoritative. Even people who think they are smart would fall into the trap... I have rarely seen such a tactic as this in 20 years or so as a legislator."
Some of the victims met the representatives of the syndicate on the mainland or in Taiwan and even Singapore, before transferring the money.
To said he would also arrange for those victims to report the case to law enforcement agencies overseas.
"There are no foreign exchange controls in Hong Kong. It is an international finance centre, but it could also be an international scam centre," To said, adding that the city's police should take the lead in the investigation.
The police said more than 80 alleged victims had come forward as of yesterday, with combined losses of HK$150 million.
To date, five people have been arrested for conspiracy to defraud, in connection with the case. They have been released on bail and are required to report to the police early next month. The commercial crime bureau is investigating.
The Hong Kong Monetary Authority said bitcoins and similar virtual commodities were not regulated by the watchdog.
It urged the public to exercise extra caution when considering making transactions or investments with bitcoin.
Yesterday, one bitcoin was trading at US$293.
