Hong Kong Crypto Mining Founder Flees with $2.5 Million
A new day, and there’s another cryptocurrency related mining scam. Residents of Macau, which is across the Pearl River Delta from Hong Kong complained to law enforcement that the founder of a crypto mining firm fled and disappeared with HK$20 million which is roughly equal to $2 million.
This company is Forger Esports, a Hong Kong based company that focuses on eSports and IT supplies. The company also decided to expand into cryptocurrency mining. Dennis Lau is the founder of the company that allegedly ran away with the money.
Last year, this company participated in a seminar at the office of the Macau Civil Servants Association where they talked about the benefits of crypto mining. Forger Esports told the attendees of the seminar that the company was planning to develop a comprehensive operation that would generate about roughly HK$200,000 or $25,500 USD a month. Investors would, in turn, receive a fixed return on their investments.
While everything ran smoothly in the beginning, in July, the promised returns were not paid to the investors. Furthermore, attempts to contact Lau, were ignored and the CEO has disappeared since then, taking the investments with him. The investors filed a complaint with the police and it was calculated that from all the accounts, the investors are together owed HK$50 million or over USD 6 million based upon initial investments and promised fixed returns.
The Monetary Authority of Macao(AMC) had earlier issued an statement about Bitcoin and other cryptocurrencies. The statement said,
Any trading of these commodities involves considerable risks, including but not limited to those relating to money laundering and terrorism financing, against which all participants should remain vigilant. The AMCM has also reminded all the banking and payment institutions in Macao not to participate in or provide, directly or indirectly, any financial services for the related activities.