MyCoin Exchange Bankruptcy - Revision history

Azoundria: Another 30 minutes complete. All information sections updated. Added the logo uploaded. Loss estimates cleaned up. Information from homepage integrated.

2024-02-09T21:25:59Z

Another 30 minutes complete. All information sections updated. Added the logo uploaded. Loss estimates cleaned up. Information from homepage integrated.

← Older revision		Revision as of 15:25, 9 February 2024
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	== About MyCoin ==		== About MyCoin ==
	Hong Kong based MyCoin described itself as a "leading global Bitcoin trading platform and application service provider"<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>. Parent company Rich Might Investment Ltd.<ref name=":4">[http://www.bloomberg.com/news/articles/2015-03-18/glittery-mycoin-ends-in-arrests-leaves-chinese-investors-burned Glittery MyCoin Ends in Arrests, Burning Chinese Investors - Bloomberg] (Jan 26, 2024)</ref> backed MyCoin's promise of an attractive 150% yield to investors. Clients who made a HK$400,000 investment were promised a return of HK$1,000,000 over a 4-month period, based on mining of 90 bitcoins<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.		Hong Kong based MyCoin described itself as a "leading global Bitcoin trading platform and application service provider"<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref> and claimed to be the first global platform to offer integrated services for Bitcoin trading, e-commerce, mining, and leisure games<ref name=":5">[https://web.archive.org/web/20140912073359/https://www.mycoin.hk/zh-hk/index.jsp MyCoin Homepage Archive September 12th, 2014 1:33:59 AM MDT] (Feb 9, 2024)</ref>. MyCoin advertised various services, including cloud mining, an online mall, a Bitcoin game center, and a professional Bitcoin trading center<ref name=":5">[https://web.archive.org/web/20140912073359/https://www.mycoin.hk/zh-hk/index.jsp MyCoin Homepage Archive September 12th, 2014 1:33:59 AM MDT] (Feb 9, 2024)</ref>. Parent company Rich Might Investment Ltd.<ref name=":4">[http://www.bloomberg.com/news/articles/2015-03-18/glittery-mycoin-ends-in-arrests-leaves-chinese-investors-burned Glittery MyCoin Ends in Arrests, Burning Chinese Investors - Bloomberg] (Jan 26, 2024)</ref> backed MyCoin's promise of an attractive 150% yield to investors who wanted to mine bitcoin<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>. Clients who made a HK$400,000 investment were promised a return of HK$1,000,000 over a 4-month period, based on mining of 90 bitcoins<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.

	The platform claimed to have 3,000 customers investing an average of HK$1 million each<ref name=":3" />. With at least one large promotional event taking place in the grand ballroom of the Sheraton Macao Hotel in August of 2014, many high-end investors were attracted<ref name=":0">[https://bitcoinist.com/alleged-mycoin-scammers-arrested-taiwan/ Alleged Scammers Behind Bitcoin Exchange Ponzi, MyCoin, Arrested in Taiwan - Bitcoinist] (Jan 26, 2024)</ref>. Investors reportedly gathered to hear American investor and financial commentator Jim Rogers<ref name=":4" /><ref>[[wikipedia:Jim_Rogers\|Jim Rogers - Wikipedia]] (Feb 9, 2024)</ref>, eat free meals and be entertained by singers, dancers and glittering beauty queens<ref name=":4" />.		The MyCoin platform emphasized innovation, security, stability, and user experience<ref name=":5">[https://web.archive.org/web/20140912073359/https://www.mycoin.hk/zh-hk/index.jsp MyCoin Homepage Archive September 12th, 2014 1:33:59 AM MDT] (Feb 9, 2024)</ref>. The platform claimed to have 3,000 customers investing an average of HK$1 million each<ref name=":3" />. With at least one large promotional event taking place in the grand ballroom of the Sheraton Macao Hotel in August of 2014, many high-end investors were attracted<ref name=":0">[https://bitcoinist.com/alleged-mycoin-scammers-arrested-taiwan/ Alleged Scammers Behind Bitcoin Exchange Ponzi, MyCoin, Arrested in Taiwan - Bitcoinist] (Jan 26, 2024)</ref>. Investors reportedly gathered to hear American investor and financial commentator Jim Rogers<ref name=":4" /><ref>[[wikipedia:Jim_Rogers\|Jim Rogers - Wikipedia]] (Feb 9, 2024)</ref>, eat free meals and be entertained by singers, dancers and glittering beauty queens<ref name=":4" />.

	The platform allowed investors to withdraw profits they had accumulated. One man, Bikash Gurung, invested around HK$600,000 (£50,625, $77,400) ~~with Mycoin.hk~~ and successfully received a payment of HK$100,000<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.		The MyCoin website assures investors that it was offering a safe and viable investment opportunity<ref name=":5" />. The platform emphasized innovation in its services, products, and technology, ensuring stability, security, and user experience<ref name=":5" />. The website highlighted features such as SSL encryption, multi-factor authentication, cold storage wallets, and 24/7 data monitoring to safeguard users' assets<ref name=":5" />. MyCoin promised free transactions, avoiding fees for deposits, withdrawals, and trading, thus maximizing users' profits<ref name=":5" />. The platform provided contact details for inquiries, reinforcing its accessibility and transparency<ref name=":5" />. The platform allowed investors to withdraw profits they had accumulated. One man, Bikash Gurung, invested around HK$600,000 (£50,625, $77,400) and successfully received a payment of HK$100,000<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.

	Website: mycoin.hk.		Website: mycoin.hk<ref name=":5" /><ref name=":6">[https://web.archive.org/web/20141218040045/https://mycoin.hk/ MyCoin Homepage Archive December 17th, 2014 9:00:45 PM MST] (Feb 9, 2024)</ref>.

	https://web.archive.org/web/20140801000000*/mycoin.hk

	== The Reality ==		== The Reality ==
	There were no bitcoins on the MyCoin platform. All investors were participating in an elaborate ponzi scheme.		There were no bitcoins on the MyCoin platform. All investors were participating in an elaborate ponzi scheme which would inevitably collapse. One of the largest red flags in the scheme was the limited information provided on the bitcoin mine which was supposed to be responsible for generating the profits<ref name=":3" />. The Bitcoin Association of Hong Kong's president, Leonhard Weese highlighted numerous red flags on the company's website (notably after the scheme had collapsed)<ref name=":3" />.<blockquote>"I don't think they ever had a bitcoin mine, they never had the bitcoin mine that they advertised, the website for their bitcoin mine shows only very generic information about bitcoin. It doesn't show any information about what people would be interested in when they invest in a bitcoin mine - where is it?

	~~=== No Information About Bitcoin Mine ===~~
	One of the largest red flags in the scheme was the limited information provided on the bitcoin mine which was supposed to be responsible for generating the profits<ref name=":3" />. The Bitcoin Association of Hong Kong's president, Leonhard Weese highlighted numerous red flags on the company's website<ref name=":3" />.<blockquote>"I don't think they ever had a bitcoin mine, they never had the bitcoin mine that they advertised, the website for their bitcoin mine shows only very generic information about bitcoin. It doesn't show any information about what people would be interested in when they invest in a bitcoin mine - where is it?

	"What are the specifications? How large is it? Who is maintaining it? All these things, all these information are missing. So I very much doubt they ever had a bitcoin mine. They used the investments from new customers to pay out the returns from older customers,"</blockquote>		"What are the specifications? How large is it? Who is maintaining it? All these things, all these information are missing. So I very much doubt they ever had a bitcoin mine. They used the investments from new customers to pay out the returns from older customers,"</blockquote>
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	\|MyCoin Promotion		\|MyCoin Promotion
	\|A MyCoin promotion runs in the grand ballroom of the Sheraton Macao Hotel<ref name=":0" />.		\|A MyCoin promotion runs in the grand ballroom of the Sheraton Macao Hotel<ref name=":0" />.
			\|-
			\|September 12th, 2014 1:33:59 AM MDT
			\|MyCoin Website Captured
			\|The MyCoin website is captured normally<ref name=":5" />.
			\|-
			\|December 17th, 2014 9:00:45 PM MST
			\|Support Number Change
			\|A capture of the website reveals that the support phone number has been changed and the platform apologizes for any inconvenience<ref name=":6" />.
	\|-		\|-
	\|January 2015		\|January 2015
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	== Technical Details ==		== Technical Details ==
	Like most ponzi schemes, a potentially profitable model was claimed, and in this case, the model was reportedly involved bitcoin mining. Investors believed that if they invested HK$400,000, bitcoin miners could be deployed to generate 90 bitcoins (worth HK$1,000,000) in profit for them<ref name=":3" />.		Like most ponzi schemes, a potentially profitable model was claimed, and in this case, the model was reportedly involved bitcoin mining. Investors believed that if they invested HK$400,000, bitcoin miners could be deployed to generate 90 bitcoins (worth HK$1,000,000) in profit for them<ref name=":3" />.


	== Total Amount Lost ==		== Total Amount Lost ==
	Different sources have reported slightly different amounts. Police initially declined to say how many complaints had been made, but said a statement would be issued<ref name=":3" />.		Different sources have reported slightly different amounts. Police initially declined to say how many complaints had been made, but said a statement would be issued<ref name=":3" />.
	{\| class="wikitable"		{\| class="wikitable"
	\|+		\|+Loss Estimates From Various Sources
	!Date		!Date
	!Provider		!Provider
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	\|States as "at least".		\|States as "at least".
	\|-		\|-
			\|August 28th, 2015
			\|Bitcoinist<ref name=":0" />
			\|30,600,000
	\|		\|
			\|-
			\|Unknown
	\|Comparitech<ref name="comparitech-10032" />		\|Comparitech<ref name="comparitech-10032" />
	\|386,900,000		\|386,900,000
	\|		\|
	\|-		\|-
	\|		\|Unknown
	\|Kyle Gibson<ref name="kylegibson-86" />		\|Kyle Gibson<ref name="kylegibson-86" />
	\|8,000,000		\|8,000,000
	\|Description says $387m.		\|Description says $387m.
	\|-
	\|
	~~\|Bitcoinist<ref name=":0" />~~
	~~\|30,600,000~~
	\|
	\|}		\|}
	The total amount lost has been estimated at $387,000,000 USD.		The total amount lost has been estimated at $387,000,000 USD.
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	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
	== Individual Prevention Policies ==		== Individual Prevention Policies ==
	{{Prevention:Individuals:~~Placeholder~~}}		{{Prevention:Individuals:Avoid Third Party Custodians}}

			{{Prevention:Individuals:Question Unrealistic Profit}}

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}

	== Platform Prevention Policies ==		== Platform Prevention Policies ==
	{{Prevention:Platforms:~~Placeholder~~}}		{{Prevention:Platforms:Regular Audit Procedures}}

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}
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	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.		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.

	{{Prevention:Regulators:~~Placeholder~~}}		{{Prevention:Regulators:Platform Security Assessments}}

	{{Prevention:Regulators:End}}		{{Prevention:Regulators:End}}

Azoundria at 21:06, 9 February 2024

2024-02-09T21:06:05Z

← Older revision		Revision as of 15:06, 9 February 2024
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	{{Case Study Under Construction}}		{{Case Study Under Construction}}

	The operation of a bitcoin ATM, efforts made to list on a stock exchange, and a grand performance in the ballroom of a fancy hotel gave legitimacy to the MyCoin exchange operation and their offer to set up bitcoin miners capable of earning 90 bitcoin (worth HK$1,000,000) for just HK$400,000. The scheme lasted for months with investors able to receive profits before ultimately collapsing as the price of bitcoin fell in February 2015.		[[File:Mycoinplatform.jpg\|thumb\|MyCoin Homepage/Logo]]The operation of a bitcoin ATM, efforts made to list on a stock exchange, and a grand performance in the ballroom of a fancy hotel gave legitimacy to the MyCoin exchange operation and their offer to set up bitcoin miners capable of earning 90 bitcoin (worth HK$1,000,000) for just HK$400,000. The scheme lasted for months with investors able to receive profits before ultimately collapsing as the price of bitcoin fell in February 2015.

	== About MyCoin ==		== About MyCoin ==

Azoundria: Starting

2024-02-09T18:08:34Z

Starting

← Older revision		Revision as of 12:08, 9 February 2024
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	{{Case Study Under Construction}}		{{Case Study Under Construction}}

	The operation of a bitcoin ATM, efforts made to list on a stock exchange, and a grand performance in the ballroom of a fancy hotel gave legitimacy to the MyCoin exchange operation, and their offer to ~~turn~~ HK$~~400~~,000 to HK$~~1,000~~,000. The scheme lasted for months with investors able to receive profits before ultimately collapsing in February 2015.		The operation of a bitcoin ATM, efforts made to list on a stock exchange, and a grand performance in the ballroom of a fancy hotel gave legitimacy to the MyCoin exchange operation and their offer to set up bitcoin miners capable of earning 90 bitcoin (worth HK$1,000,000) for just HK$400,000. The scheme lasted for months with investors able to receive profits before ultimately collapsing as the price of bitcoin fell in February 2015.

	== About MyCoin ==		== About MyCoin ==
	Hong Kong based MyCoin described itself as a "leading global Bitcoin trading platform and application service provider"<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>. Parent company Rich Might Investment Ltd.<ref name=":4">[http://www.bloomberg.com/news/articles/2015-03-18/glittery-mycoin-ends-in-arrests-leaves-chinese-investors-burned Glittery MyCoin Ends in Arrests, Burning Chinese Investors - Bloomberg] (Jan 26, 2024)</ref> backed MyCoin's promise of an attractive 150% yield to investors. Clients who made a HK$400,000 investment were promised a return of HK$1,000,000 over a 4-month period, based on mining of 90 bitcoins<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.		Hong Kong based MyCoin described itself as a "leading global Bitcoin trading platform and application service provider"<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>. Parent company Rich Might Investment Ltd.<ref name=":4">[http://www.bloomberg.com/news/articles/2015-03-18/glittery-mycoin-ends-in-arrests-leaves-chinese-investors-burned Glittery MyCoin Ends in Arrests, Burning Chinese Investors - Bloomberg] (Jan 26, 2024)</ref> backed MyCoin's promise of an attractive 150% yield to investors. Clients who made a HK$400,000 investment were promised a return of HK$1,000,000 over a 4-month period, based on mining of 90 bitcoins<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.

	The platform claimed to have 3,000 customers investing an average of HK$1 million each<ref name=":3" />. With at least one large promotional event taking place in the grand ballroom of the Sheraton Macao Hotel in August of 2014, many high-end investors were attracted<ref name=":0">[https://bitcoinist.com/alleged-mycoin-scammers-arrested-taiwan/ Alleged Scammers Behind Bitcoin Exchange Ponzi, MyCoin, Arrested in Taiwan - Bitcoinist] (Jan 26, 2024)</ref>. Investors reportedly gathered to hear investor Jim Rogers, eat free meals and be entertained by singers, dancers and glittering beauty queens<ref name=":4" />.		The platform claimed to have 3,000 customers investing an average of HK$1 million each<ref name=":3" />. With at least one large promotional event taking place in the grand ballroom of the Sheraton Macao Hotel in August of 2014, many high-end investors were attracted<ref name=":0">[https://bitcoinist.com/alleged-mycoin-scammers-arrested-taiwan/ Alleged Scammers Behind Bitcoin Exchange Ponzi, MyCoin, Arrested in Taiwan - Bitcoinist] (Jan 26, 2024)</ref>. Investors reportedly gathered to hear American investor and financial commentator Jim Rogers<ref name=":4" /><ref>[[wikipedia:Jim_Rogers\|Jim Rogers - Wikipedia]] (Feb 9, 2024)</ref>, eat free meals and be entertained by singers, dancers and glittering beauty queens<ref name=":4" />.

	The platform allowed investors to withdraw profits they had accumulated. One man, Bikash Gurung, invested around HK$600,000 (£50,625, $77,400) with Mycoin.hk and successfully received a payment of HK$100,000<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.		The platform allowed investors to withdraw profits they had accumulated. One man, Bikash Gurung, invested around HK$600,000 (£50,625, $77,400) with Mycoin.hk and successfully received a payment of HK$100,000<ref name=":3">[http://www.ibtimes.co.uk/investors-file-police-complaints-alleging-mycoin-bitcoin-fraud-1487561 Investors file police complaints alleging MyCoin of bitcoin fraud - International Business Times] (Jan 26, 2024)</ref>.

Azoundria: COMPLETE Another 30 minutes. Massively expanded with additional information about the scheme from different sources. Filling in information in various sections.

2024-02-09T18:02:09Z

COMPLETE Another 30 minutes. Massively expanded with additional information about the scheme from different sources. Filling in information in various sections.

Show changes

Azoundria: Another 30 minutes. Reviewed all existing sources. Adding more news articles referenced from other sources. Timeline and loss estimates filled in.

2024-01-26T23:22:33Z

Another 30 minutes. Reviewed all existing sources. Adding more news articles referenced from other sources. Timeline and loss estimates filled in.

Show changes

Azoundria at 17:48, 16 October 2023

2023-10-16T17:48:15Z

← Older revision		Revision as of 11:48, 16 October 2023
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	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.		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.

	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" /><ref name="comparitech-10032" />

	== About MyCoin ==		== About MyCoin ==
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>		<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>

	<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref></references>		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>

			<ref name="comparitech-10032">[https://www.comparitech.com/crypto/cryptocurrency-scams/ Worldwide crypto & NFT rug pulls and scams tracker - Comparitech] (Dec 15, 2022)</ref></references>

Azoundria at 23:58, 12 April 2023

2023-04-12T23:58:17Z

← Older revision		Revision as of 17:58, 12 April 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	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.		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.

	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />
	<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />

	== About MyCoin ==		== About MyCoin ==
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	!Description		!Description
	\|-		\|-
	\|February 1st, 2015 12:00:38 AM		\|February 1st, 2015 12:00:38 AM MST
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Coming soon.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	~~Coming soon.~~		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==

Azoundria at 00:51, 16 February 2023

2023-02-16T00:51:21Z

← Older revision		Revision as of 18:51, 15 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}}
			{{Unattributed Citations}}

	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.		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.

	This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.		This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.
			<ref name="kylegibson-86" /><ref name="bitcoinexchangeguide-218" />

	== About MyCoin ==		== About MyCoin ==
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	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|February 1st, 2015 12:00:38 AM		\|February 1st, 2015 12:00:38 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $387,000,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 80:		Line 77:

	== References ==		== References ==
	[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)		<references><ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>

	[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}} 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 wh..."

2023-01-24T20:43:59Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}} 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 wh..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/mycoinexchangebankruptcy.php}}

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.

This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.

== About MyCoin ==
"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."

This exchange or platform is based in Hong Kong, or the incident targeted people primarily in Hong Kong.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - MyCoin Exchange Bankruptcy
!Date
!Event
!Description
|-
|February 1st, 2015 12:00:38 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Coming soon.

== References ==
[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)

[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)