Ponzi schemers have found fertile territory for practicing their methods; lately, it seems many are getting caught.
Bitcoin Exchange
Bitcoin Exchanges have no audit process, no way of keeping them honest, no trail and no verification procedures. It’s just a number like he said. It’s all trust, based on a house of cards and this is one of the issues I’ve been harping on about from the beginning. Why do you trust the exchanges? What gives Bitcoin it’s value? ~ NERDr.Com
Alleged Bitcoin scam leaves millions missing
Hong Kong (AFP) – Investors in a Hong Kong-based Bitcoin trading company fear they have fallen victim to a scam after it closed down, a lawmaker said Monday, adding losses could total HK$3 billion ($387 million).
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.
One investor said she spent HK$1.3 million in swap options for the virtual currency last September.
She said salespersons had told her she would recoup her investment in four months and make around 200-300 percent profit in one year.
Keep reading Alleged Bitcoin scam leaves millions missing – Yahoo Finance.
Over 70 Bitcoin Scams Shut Down By New York Law Enforcement
Excerpt: As originally reported by Bloomberg News, 73 sites were taken offline on 16th January by the office, including BitcoinHYIP.org and others owned by a company called YouYou Finance.
The defendants are accused of securities fraud and intent to commit fraud, as well as larceny charges, according to documents provided to CoinDesk. The investigator explained the background of his investigation into high-yield investment schemes based on bitcoin, as well as how the office went undercover and used the services.
More here.
Top picture via Pixabay. Picture above via Coindesk.
