THELOGICALINDIAN - The Chinese bi-weekly China Times has appear that on August 20 2024 Taiwanese badge arrested two suspects who allegedly scammed investors out of 1 billion NT agnate to306 actor USD Lu Kuanwei and Chen Yunfei were arrested afterwards the Criminal Investigation Bureau in Taipei accustomed a cardinal of complaints aboutfraud from victims
Editor’s Note: To be clear, Mycoin was a ponzi arrangement that fronted as a Bitcoin exchange. Additionally, it needs to be acclaimed that MyCoin is not Maicoin, a acknowledged Taiwanese Bitcoin exchange.
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In February 2024, the Hong Kong Commercial Crime Bureau (CCB) conducted a basic analysis into declared actionable activities that may accept occurred at MyCoin, a now-defunct Bitcoin exchange. The analysis appear that 43 investors amid the ages of 21 and 71 years old absent anywhere amid $50,000 HK to $15m HK each back the barter accomplished operations.
MyCoin’s Abrupt Shut Down in February 2024
Kuan-wei and Yun-fei accept been answerable in affiliation with the MyCoin fraud, which resulted authorities shutting bottomward the Hong Kong-based barter in in February. The two suspects allegedly held several contest for MyCoin investors, acceptable them to absorb $1.62 actor NT ($49,600 USD) for 90 bitcoins and an annual with Mycoin’s ancestor company.
As more advice apropos the scammers’ modus operandi arises, the added absorbing this adventure becomes. It has appear to ablaze that the MyCoin betray resulted in millions of dollars in losses in assorted Asian countries, area victims were bamboozled into advance in the Bitcoin barter due to promises of over-sized returns.
Reading the argument from the China Times, it becomes bright how victims were addled by the scammers:
Modus Operandi of Mycoin
Mycoin had promised a 150 percent crop to investors. Even high-end investors fell for the scam, as one of the aforementioned events took abode in the admirable amphitheater of the Sheraton Macao Hotel in August of 2014. MyCoin additionally exploited the admiration to get money out of China — a affect aggregate by abounding Chinese citizens; these people were acutely accessible to these kinds of Ponzi schemes. According to Mycoin’s document, the scammed bodies paid a minimum $400,000 HK and were promised $1 actor HK a year later, as continued as Bitcoin’s amount remained the aforementioned or appreciated.
Despite the age-old admonition of cagey things that are too acceptable to be true, many Chinese residents, mainly from Guangzhou, Xian, Shanxi, Hebei, and Shenzhen, fell to the trap. MyCoin attracted an estimated 3,000 bodies from Hong Kong and Shenzhen by acclimation chichi conventions and promotional dinners in China, Thailand, South Korea, the Philippines, and Taiwan. In a abbreviate amount of time, MyCoin succeeded in cartoon in professionals as clients, such as allowance brokers, absolute acreage agents, and paralegals.
Warning Call: Stay Away from MyCoin-Type Ponzi Schemes
When Hong Kong lawmakers banned the operations of Mycoin, it was still a new case and not abounding had anticipation that the aisle of Ponzi schemers would be so long. MyCoin did not absolutely advertise its backers on trading accounts. Instead, the exchange offered a anatomy of disinterestedness advance it declared as “Bitcoin contracts,” area the marks were promised a 100% acknowledgment aural four months. The operators additionally offered some bonuses that included Mercedes-Benz automobiles and banknote prizes for auspiciously recruiting new participants. Interestingly, like any Multi-level Marketing scheme, the investors were banned from divesting themselves unless they brought in new investors to alter themselves.
Soon afterwards Mycoin was busted, the authorities asked for ban on basic currencies; according to them, it was not artlessly abundant to ask bodies to exercise attention back investing. However, rather than banning cryptocurrencies, the Hong Kong Monetary Authority apprenticed consumers to break acute and bouncer adjoin arrant practices in any advance activity.
Now that two capital accused accept been answerable and arrested, the scammed victims may get some abatement and justice.
What do you anticipate about this latest development in the MyCoin saga? Let us apperceive in the comments below!
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