Police Arrest Five in MyCoin Bitcoin Exchange Scheme Case

Stan Higgins
Mar 5, 2015 at 22:35 UTC
Updated Mar 6, 2015 at 15:05 UTC
news

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

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