Between MyCoin and Russia's Current Stance, Bitcoin is a Mixed Bag
Boy oh boy... So we can definitely say that bitcoin has had a relatively slow and standard week, considering all it's been going through. Last week saw the price hovering at around $225, and now the price has slipped down to about $220. A very minor drop, but still a drop no less. The recent news regarding the bankruptcy of MyCoin in China, which saw to almost $400 million in investors' funds go down in flames like a sinking ship certainly has a lot of people worried and on edge. Many are looking at MyCoin and calling it the next Mt. Gox... Maybe it is. After all, the amounts lost are....
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When the first major bit-heist, Mt. Gox, happened, many in the crypto community might have been forgiven for thinking that it had been but a minor case of arrhythmia. However with the latest incident involving MyCoin, a bitcoin exchange in Hong Kong, it appears that we might soon have a full-scale coronary. There will have to be stronger guarantees for client funds going forward if we are not going to abandon the promise of Bitcoin altogether. MyCoin went belly up a week ago, disappearing with about US$ 387 million, leaving 3,000 clients out in the cold. This latest incident could not have....
MyCoin is currently under investigation for running a Ponzi bitcoin scam, and two of its organizers were recently arrested in Taiwan. According to Taipei's Criminal Investigation Bureau, individuals Lu Kuan-wei and Chen Yun-fei were apprehended since they have held a few events for MyCoin. "Chen and Lu held several events for investors convincing each one to spend NT$1.62 million (US$49,600) for 90 BTC and an account with MyCoin's parent company, which would distribute 0.63 of a bitcoin every day for a total value of NT$11,000 (US$337). The investors were told that their investment would....
Bitcoin in the Headlines is a weekly look at global bitcoin news, analysing media coverage and its impact. Bitcoin has been hung out to dry many times before in the media as part of reports that supporters argue often overemphasise its involvement in criminal activities. Its reputation often suffers due to the lack of information - or misinformation - available. If the Silk Road Trial did not do enough to put bitcoin under scrutiny, the recent scandal at Hong Kong bitcoin exchange MyCoin certainly fueled new skepticism around the digital currency. What was said about bitcoin this week and....
Hong Kong-based Bitcoin exchange MyCoin.hk is reported to have gone bankrupt, taking away US$390 million worth investors' funds with it. According to The South China Morning Post, the lost money belongs to a total of 3,000 exploited MyCoin customers who all were promised double returns in over a year. One of the victims, surnamed Lau, told the newspaper that they were asked by the higher tiers of the scheme to bring more customers if they need the money back. Her statements clearly explained MyCoin was a pyramid-structured Ponzi company. Other investors shared Lau's statement and further....
The Chinese newspaper, China Times, has reported that on August 20, 2015, Taiwanese police arrested two suspects who allegedly scammed investors out of $1 billion NT, equivalent to $30.6 million USD. Lu Kuan-wei and Chen Yun-fei were arrested after the Criminal Investigation Bureau in Taipei received a number of complaints about fraud from victims. Editor’s Note: To be clear, Mycoin was a ponzi scheme that fronted as a Bitcoin exchange. Additionally, it needs to be noted that MyCoin is not Maicoin, a legal Taiwanese Bitcoin exchange.