Updated 11:29 AM EDT, Tue, Jun 16, 2020

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Bitcoin Exchange in Hong Kong Disappears, Stealing $386 Million


(Photo : Reuters) Hong Kong Bitcoin exchange MyCoin has disappeared from the internet.

Hong-Kong based Bitcoin exchange MyCoin has mysteriously vanished from the internet, following a new recruitment drive in December to bring in more investors.

The exchange had HK$3 billion ($386 million USD) held for 3,000 investors, but in December set a new rule forcing investors to find new clients or have their Bitcoin withheld.

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MyCoin also pushed a new recruitment drive, offering new investors a Mercedes-Benz when they invested, an obvious scam that showed the desperation of the company.

Investors could remove their Bitcoin earnings, but would be given 10 times less than the current market value. This is when investors started to realise the deal with MyCoin, but it was already too late.

One investor, an 81-year old Ms. Chan, invested HK$400,000 ($51,590) in the program after her estate agent promised double the investment in just one year. Ms. Chan says she was foolish to believe in the investment, but now has nothing to take home.

A prominent lawyer in Hong-Kong claims due to the lack of paperwork, there is currently no official information stating the investors had any shares in Bitcoin.

Due to the lack of regulation and security surrounding Bitcoin, it is unlikely MyCoin owners will be found, and even if they are it is unlikely all of the money will be given back to investors.

It is just one of many failed Bitcoin exchanges, showing major issues with the cryptocurrency and the way it is being portrayed as something that needs to be invested in now, before it is too late.

Bitcoin has been steadily dropping from its high of over $1,000, down to $250 in the past few weeks. While it looks balanced now, many are out of pocket due to large investments in 2013 and 2014, which have not paid off.

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