Categories: Ethereum

Investors Allegedly Misled In Crypto Mining Hardware Scam Tied To Fictitious Filecoin

Click here to view original web page at www.ethnews.com

According to an article in the South China Morning Post (SCMP), a number of investors claim they were tricked into investing in "crypto machines" and lost a total of 3 million Hong Kong dollars (HK$) (about $382,924 USD) to Hong Kong-based cryptocurrency promoter Wong Ching-kit.

The SCMP reports that the Democratic Party within the Legislative Council of Hong Kong says it has received over 20 complaints since October 2018 regarding Wong's alleged scheme. Wong allegedly encouraged investors to purchase mining hardware for a token called Filecoin, promising the clients profits within three months of their investment.

Filecoin advertised that it would be built on proof of replication, incentivizing miners to fulfill data storage requests from other users on the Filecoin market to earn more of the token. ETHNews covered Filecoin's $186 million ICO in August 2018. The Filecoin sale ended in September 2018 after raising a total of $205.8 million.

This is where the investors' problems began. They claim that Wong promised profits even though Filecoin is not a tradeable token at present. An August 2018 blog post from Filecoin indicates that the launch of the network was estimated to take place in quarter two or three of 2019. The website's FAQ page also states that, during the ICO, Filecoin encountered fraudulent parties claiming to sell Filecoin and warned that individuals should "[stay] away from any exchange or entity who claims to be buying, selling, or trading Filecoin."

The four investors in the article claim to have lost between HK$20,000 (about $2,552) and HK$1 million (about $127,641). An unnamed police spokesperson is also cited as stating that nine more individuals had lodged complaints with authorities, claiming a total loss of HK$940,000 (about $119,982). Each investor is demanding a full refund.

Wong has yet to be officially charged. The SCMP reports that Ramon Yuen Hoi-man, deputy spokesperson of the Democratic Party's financial panel and Hong Kong authorities, will conduct a probe into Wong's dealings with the investors and investigate a possible money laundering charge.

Wong, who co-runs the Facebook group Epoch.Cryptocurrency, was arrested in December 2018 for throwing HK$500 bills from the roof of a building in Hong Kong. He apparently livestreamed his arrest on Facebook.

Nicholas Ruggieri studied English with an emphasis in creative writing at the University of Nevada, Reno. When he’s not quoting Vines at anyone who’s willing to listen, you’ll find him listening to too many podcasts, reading too many books, and crocheting too many sweaters for his dogs, RT and Peterman.

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Filecoin, Hong Kong or other Ethereum law and legislation news.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

The Entire Bitcoin Dynamic is Changed by the Lightning Network, Says Samson Mow

Samson Mow, BTCC Exchange’s Founder and Magical Crypto Friends and Blockstream’s present CSO, recently shared his views on Bitcoin’s status… Read More

4 hours ago

Bitcoin History Part 15: Silk Road Is Born

Silk Road launched in February 2011 as the darknet’s first bitcoin-based marketplace. Within four months, it would be the darknet’s… Read More

4 hours ago

Sunday Digest: Bitcoin Price, Pantomime Season, More Craig Wright Lies

Share Tweet Send Share This week, US President, Donald J Trump, decided that he would like to buy Greenland, thereby… Read More

4 hours ago

Bitcoin Twitter Is Daydreaming About a Hong Kong Bank Run

Crypto-fever dreamers cheered as Hong Kong protesters suggested organizing a bank run, but apparently rioters didn't flock to bitcoin. |… Read More

4 hours ago

World Bank issues second tranche of Ethereum blockchain kangaroo bond

'Kangaroo bond' is the name given to a foreign bond, issued in the Australian market and denominated in Australian dollars.… Read More

4 hours ago

What the Theft of a BBC Reporter’s $30,000 in Ethereum Shows About Cryptocurrency

Last week, BBC contributor Monty Mumford lost $30,000 of Ethereum . This came after a logical thought process: invest in… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More