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Another scam of mining cryptocurrency has popped up when the founder of a company based in Hong Kong disappears with $ 2.5 million .
With the advent of another week, we have news of another scam associated with cryptocurrency mining. Residents of Macao, a region located along the Pearl River delta from Hong Kong, have reported to the ordering forces that the founder of an encrypted company has disappeared, bringing with it HK $ 20 million (or about $ 2.5 million USD).
Broken Promises
Dennis Lau is the founder of Forger Esports, a Hong Kong-based company specializing in eSports (think League of Legends) and IT supplies. Apparently, the company decided to move to the cryptocurrency sector.
Last January, Forger Esports attended a seminar at the Office of the Association of Public Employees in Macau, where they publicized the financial gains of encryption. The company told the participants that it was planning the development of a global operation that would yield around HK $ 200,000 (about $ 25,500 USD) a month. Investors would get a fixed return.
It seems that everything started smoothly at the beginning, but in July the promised yields were not paid. Attempts to contact the founder of the company have been ignored. Dennis Lau has since disappeared, bringing with him the investment funds. Investors have contacted the police, and from all accounts, investors have a total of HK $ 50 million (over $ 6.3 million USD) based on the initial investment and promised returns.
The Monetary Authority of Macao (AMC) has issued a statement that shows the usual FUD that many governments launch into Bitcoin and other virtual currencies. The declaration states:
Any exchange of these goods involves considerable risks, including but not limited to those relating to money laundering and terrorist financing, against which all participants should remain vigilant. AMCM also reminded all Macao banking and payment institutions not to participate or provide, directly or indirectly, any financial services for related activities.
Crypto Mining in the news
It has been a busy week for the Bitcoin miners. Back in June, Apple banned apps that included cryptocurrency mining, unless it was removed from the device (such as the cloud). Captain Kirk, William Shatner, became the face of a Bitcoin mining company in Vancouver, Canada.
In China, the order forces arrested a man who stole $ 15 million from customers who were looking to buy Bitcoin mining machines. The increase in demand for cars eventually exceeded the man's ability to pay for them, leaving him unable to meet his orders at the promised price.
While the FUD continues that cryptocurrency miners are destroying the environment with their raptor energy consumption, another study says that miners use only slightly more than half of the estimated power used.
Just last week, the CEO of a Vietnamese mining company fled to the United States with $ 35 million of stolen funds. Apparently, the decline in the value of Bitcoin has caused the depletion of all profits. One wonders if the same situation has also had an impact on Hong Kong's Forger Esports. So far, no official reason for the escape has been issued.
Have you invested in a cryptocurrency mining company? Paid? Let us know in the comments below .
Images courtesy of Shutterstock.
