THELOGICALINDIAN - The United States Securities and Exchange Commission works to brainwash abeyant crypto investors on the pitfalls of advance scams calling out assertive red flags investors can attending out for that may announce the advance befalling could be a betray Among the best audacious of the red flags cited are the affiance of affirmed returns
A new report out of Hong Kong is proving to be the absolute archetype of why investors should abstain any affiance of affirmed returns, alike if the being abaft the advance is a self-made Bitcoin millionaire who makes money abatement from the sky.
Bitcoin Millionaire Accused of Defrauding Hong Kong Investors
Hong Kong-based cryptocurrency business man Wong Ching-kit is in hot baptize currently, as investors in the arena are claiming the millionaire defrauded them out of HK$3 actor as allotment of a cryptocurrency mining advance scam.
Four investors are ambitious a abounding acquittance from Wong, anniversary alms losses alignment from HK$20,000 to HK$1 million, however, badge say that ten others accept claimed Wong scammed them out of an added HK$940,000 through the aforementioned affected cryptocurrency business.
Related Reading | Hong Kong Bitcoin Wiz Throws Millions From Rooftops
The austere investors affirmation that Wong awash them crypto mining accouterments accurately advised to abundance the Filecoin cryptocurrency Wong promotes. Investors who purchased the cryptocurrency miner from Wong and his business were promised to accomplish a assisting acknowledgment on their advance aural three months.
Investors acquainted safe accustomed the affirmation that their antecedent advance would pay off so quickly, and were alike promised a abounding acquittance – a acquittance that has back not been honored. An broker who provided the name Ms. Chiu explained that back attempting to accept a refund, Wong acclimated “delaying approach and fabricated altered excuses to about-face us down.”
Wong took to Facebook, but fell abbreviate of abstinent the accusations investors are making, instead suggesting the investors are aloof agitated because they absent money. “When they accomplish money, there is no acknowledge you. When they lose money, they alarm it a scam” he said.
Beware of Red Flags in Crypto and Bitcoin Related Investments
As for why investors may accept been bamboozled into assertive Wong and his claims, the 24-year-old did absolutely became a millionaire by advance in Bitcoin. Wong, who additionally goes by the nicknames “Mr. Coin” and “Coin Young Master” additionally pulled some abominable publicity stunts to advance his reputation, including authoritative money abatement from the sky by tossing at atomic $6,000 in authorization bill from a Hong Kong high-rise.
Related Reading | SEC Educates Investors On Red Flags By Launching Fake Crypto Site
This case of artifice allegations serves as a absolute archetype of why crypto investors charge to beware of any investments that present red flags such as affirmed returns. Other red flags accommodate celebrity endorsements, the adeptness to advance with a acclaim card, and more.
