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Alleged Bitcoin Scam Leaves Millions Missing
First time accepted submitter OutOnARock writes Yahoo Finance is reporting on the latest Bitcoin scam, this time from Hong Kong. "Investors in a Hong Kong-based Bitcoin trading company fear they have fallen victim to a scam after it closed down, a lawmaker said Monday, adding losses could total HK$3 billion ($387 million). Leung Yiu-chung said his office recently received reports from dozens of investors in Hong Kong who paid a total of HK$40 million ($5.16 million) into the scheme run online by MyCoin, but the total loss may be vastly more. 'The number of cases is increasing. These two days I received calls about more than 30 cases. We estimate more than 3,000 people and HK$3 billion are involved,' he told AFP."
With a bank, they could shut down, and the government would handle their losses, so I'd say a bank is a lot freer to do stuff.
However, BitCoin is a buzzword, similar to how "MP3" was in the early 2000s, where one could have something related, use that term and sell it, such as "MP3 headphones", "MP3 batteries", even an ordinary cassette tape (as opposed to the MP3 player shaped as a cassette which worked in car stereos) marked as "good enough to copy MP3 files to it."
Same with BitCoin. Do a pyramid scheme, stick the term "BitCoin" on it, sit back, rake in the dough. Even though it has -nothing- to do with the cryptocurrency at all, it is just the same type of scam as previously.