Bitcoin has a bad reputation all over the world, as the virtual currency is often associated with scams, hacking and Ponzi schemes. Several financial experts went as far as calling Bitcoin – “the biggest Ponzi scheme of all times” – a few years ago. Unfortunately, the latest arrest of people allegedly associated with the MyCoin Bitcoin Ponzi in Taiwan will only fuel the fire.
The MyCoin Scam – Millions Of Losses Across Multiple Countries
Earlier this year, the Bitcoin world received another major blow when the Mycoin investment platform turned out to be a major Ponzi scheme. Formerly known as a major Bitcoin exchange in Hong Kong, MyCoin ceased operations earlier this year for undisclosed reasons. One thing the company failed to mention is how they held quite a chunk of customer funds, without ever planning to repay them.
The Hong Kong Commercial Crime Bureau received multiple complaints from various MyCoin users. When all was said and done, a total of 43 claims against MyCoin were noted down, with every individual reporting losses between HK$50,000 and HK$15m. Needless to say, the total amount was staggering!