Entrepreneur Cheats Crypto Mining Investors

In the latest cryptocurrency news, a Hong Kong-based entrepreneur was recently accused of exploiting investors in a digital currency mining hardware investment scheme. The second current largest party in the legislative Council of Hong Kong called the Democratic Party is said to have obtained at least 20 complaints since October 28 pertaining to the said scheme.

Millions Of Losses

The man in question is named Wong Ching-kit, who is a 24-year old businessman. There are reportedly four victims, all of whom are believed to have suffered massive losses from the aforementioned exploitation. The figures are between HK$20,000 and HK$1 million ($2,500 – $127,600), which refer individually.

The numbers arrive at a combined loss of nearly HK$3 million ($383,000). The victims have already processed a full refund on their investments as per the official report.

A spokesperson from the police has further revealed that an addition of nine individuals, aged 29-41, had previously filed complaints with the authorities suggesting that they had been exploited. But unlike the four victims, they had a combined loss of about HK$940,000 ($120,000) in investments – and these are all due to Wong’s faked cryptocurrency business.

A Fake Digital Currency

Wong is said to have misled investors into buying mining hardware for a digital currency called “Filecoin.” He promised them that profits of their investments would be acquired within a short period of time, much like around three months.

Filecoin, however, was yet to be tradeable. Investors believed that the aforementioned suspect and this promise to refund the losses would not be honored.

Ramon Yuen Hoi-man, who is the deputy spokesman for the Democratic Party’s financial policy panel, has already started helping the affected investors and told the media as well as the police department that he subsequently acquired a “threatening” phone call. According to him, the call, however, did not wholly mention Wong. Wong. Yuen is now encouraging the government to ratchet up its measures in order to start regulating the cryptocurrency sector.

No Charges Yet

Despite what happened, Wong has yet to receive charges. Still, he is subject to report an “all around” police probe into his activities. Apparently, this could include money laundering, as per the words of an unknown source from the police force.

“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.”