Hong-Kong Entrepreneur Charged Under Crypto Mining Investment Scheme Scam

Jan 8, 2019 at 07:48 Update Date :Jan 8, 2019 at 07:48 UTC

A crypto mining investment scheme scam has been noticed in Hong-Kong where an entrepreneur has been accused of cheating the crypto investors. The cryptocurrency authorities came into action when numerous complaints regarding the same have been received.

As per the reports of South China Morning Post (SCMP), January 6, the Democratic Party received more than 20 complaints against the crypto mining investing scheme which was active since October 2018. It is further noticed that the same scheme was operated by a 24-year old guy named Wong Ching-kit who is an entrepreneur and crypto businessman by profession.

Then allegations received by the second-largest political party say that the people who are affected by this scam have suffered losses of between $2500 to $127,600 combined, sums up around $383,000. The victims are demanding a refund of their loss.

The further investigation of this case shows that there is nine individual who has been affected. As per the exact figures, there are 9 individuals, normally between the age group of 29-41 who had reported earlier to the authorities about the matter. The cryptocurrency business of Wong Ching-kit scammed around $120,000 from the investments.

The whole scamming strategy involves selling mining hardware for a crypto token named as ‘Filecoin’. In return, the scamming policy promised investors a massive return on their investment. The crypto token ‘Filecoin’ was not trading – made fool of the investors with promises of refunding their investments.

The investors who have been fooled by the investment scheme got help from Ramon Yuen Hoi-man who is the deputy spokesman for the Democratic Party’s financial decisions. However, Ramon told police and authorities that he had received a lot of unknown threatening calls.

The fake phone calls warned Ramon but it is still unclear that the same calls were sent from Wong’s side. Ramon has told the government and the authorities to react on the matter and advised them to regulate the crypto market.

Wong has not been charged yet but as per the reports, he might be under police custody under money laundering charge. In the recent time, he has been seen defending himself through a social media post where he said:

“I sell mining machines only but am treated as if I have killed people. When they make money, there is no thank you. When they lose money, they call it a scam.”

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