Ron Burgundy Posted February 10, 2015 Share Posted February 10, 2015 By Michelle Price HONG KONG (Reuters) - Hong Kong's central bank has warned people against investing in virtual currencies amid local media reports that a bitcoin exchange may have run off with $387 million in client funds - making it potentially the biggest bitcoin scandal after last year's bankruptcy at Tokyo-based Mt.Gox. The South China Morning Post reported on Monday that clients of Hong Kong-based MyCoin had approached a local lawmaker alleging the company absconded with their money. An assistant for Legislative Council member Leung Yiu-chung told Reuters that Leung had received more than 15 complaints from MyCoin clients regarding the alleged fraud, and these would be passed on to the police on Wednesday. The Hong Kong Monetary Authority (HKMA) said in a statement late on Monday that the case "may involve fraud or pyramid schemes," adding: "Given the highly speculative nature of Bitcoin, we have all along urged the public to exercise extra caution when considering making transactions or investments with Bitcoin." Calls to MyCoin in Hong Kong could not be connected. View the full article Quote Link to comment Share on other sites More sharing options...
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