Hong Kong-based bitcoin exchange MyCoin has allegedly shut its doors and stolen HKD 3 billion ($386.9 million) in the process.
The South China Morning Post reported Monday that 30 MyCoin clients approached a local lawmaker with complaints that the company had fled with funds from up to 3,000 investors.
The reports coming out of Hong Kong would seem to indicate that there may have been a Ponzi scheme at play.
Ad Orientem wrote:
I feel badly for the people who got taken, but honestly the whole Bitcoin thing seemed dodgy to me from from the first time I heard of it.
I wouldn't confuse Bitcoin with Ponzi's. But anyone with a thinking brain would realize an expanding investment scheme using Bitcoin is impossible because Bitcoin are innately deflationary, i.e. he who hoards Bitcoin rules them all. Southeast Asians are just behind the developed West in terms of having broad-based experience from non-government scams. It's all part of the sad process they will need to go through to become developed.
Last edited by MachineGhost on Tue Feb 10, 2015 9:15 am, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Since Bitcoin has no value other than as a fad, I can't say I'm surprised that people who didn't understand that would also fail to understand Ponzi schemes.
