Police Arrest Five in MyCoin Bitcoin Exchange Scheme Case

Five individuals have been arrested by Hong Kong police in connection with the collapse of MyCoin, an alleged bitcoin trading platform.

Mar 5, 2015 at 10:35 p.m. UTC
Updated Sep 11, 2021 at 11:35 a.m. UTC

Five individuals have been arrested by Hong Kong police forces in connection with the collapse of MyCoin, an alleged bitcoin trading platform.

The arrests were made as part of a broader hunt for individuals associated with MyCoin, which is believed to have cost investors millions of dollars in losses for fraudulent activities. The five were arrested for conspiracy to defraud, according to the South China Morning Post.

The individuals taken into custody on 5th March were allegedly involved with soliciting funds for the scheme and holding events to attract potential investors. Hong Kong police searched the home of at least one of those arrested the same evening, the newspaper said.

The Morning Post reported those arrested have not been charged with any crimes:

“One of the women was picked up when officers boarded a casino ship anchored off North Point yesterday morning. Police caught the other four at their homes in Yuen Long, Tin Shui Wai, Wong Tai Sin and North Point."

The arrests come weeks after news first broke that Chinese investors were defrauded by MyCoin.

The Hong Kong Commercial Crime Bureau (CCB) has since announced that 43 investors may have lost roughly $8.1m as a result of attempted business with Mycoin.

Investigation continues

Hong Kong law enforcement officials continue to look for individuals connected with an investment company named Rich Might Investment, including its former director William Dennis Atwood.

It remains unclear whether MyCoin, marketed as a bitcoin exchange for local investors, ever actually held deposits of the digital currency. Early reports suggest that MyCoin may have functioned as a pyramid or Ponzi scheme.

At least one investor has claimed that the company promised payouts if more investors were referred to the scheme.

Image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
3
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
4
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown