The recent bitcoin Ponzi scheme has been a bit disappointing with overinflated estimates of its worth…$386 million estimates vs. $8 million reality??
Hong Kong authorities arrest five in suspected MyCoin bitcoin exchange Ponzi scheme
By Less than a month after Hong Kong bitcoin exchange MyCoin was exposed as a likely multi-million dollar Ponzi scheme, arrests are beginning to flow in.
Hong Kong police have yet to apprehend the masterminds behind this massive scam, but they have arrested five lower-level participants who allegedly did much of the street-level fundraising and fraud. The South China Morning Post writes:
“One of the women was picked up when officers boarded a casino ship anchored off North Point yesterday morning. Police caught the other four at their homes in Yuen Long, Tin Shui Wai, Wong Tai Sin and North Point.”
Initial reports indicated that the fraud might have cost investors as much as $386 million, but it now seems that overinflated figure was based on the exchange’s own public statements about how much money it had raised. Hong Kong’s Commercial Crime Bureau is now placing the figure at a still-terrible, but nevertheless more-modest $8.1 million, based on conversations with the several dozen victims identified to date.
Keep reading Hong Kong authorities arrest five in suspected MyCoin bitcoin exchange Ponzi scheme | PandoDaily.
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