MYCOIN

DESCRIPTION OF EVENTS

"On Monday, Chinese news website SCMP had published a report about a Hong Kong Bitcoin exchange MyCoin that reportedly swept away its investors’ $US387 million (equivalent to $HK3 billion). The report thoroughly noted the prima facie accounts of victims, describing how MyCoin tricked them into investing an average sum of $400,000 by promising attractive returns, but later disappeared into thin air; along with their money."

Explore This Case Further On Our Wiki

The operation of a bitcoin ATM and efforts made to list on a stock exchange gave legitimacy to the exchange operation. While we can look back and see this as a Ponzi scheme, the key issues at the time include a lack of knowing who’s behind the operation, lack of any sort of registration, and no visibility into the financial status of the exchange. An environment where these are not standard practice can enable such schemes to flourish.

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Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5)
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