HK Investors File Complaints over Purported Bitcoin Mining Fraud

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5 Hong Kong investors have actually filed grievances to authorities over supposed fraud including Bitcoin mining machines.During an investment seminar reportedly held last December, investors were informed that if they used Antminer S9 Bitcoin mining equipment, they could make as much as HK$ 288 or about$ 37 each day.Investors were encouraged that they have to buy at least two systems of the mining makers priced at HK$ 30,000 roughly $3,800 per system. Inning accordance with a July 24 report by Asia Times, monetary expert Phemey Poon and online investment channel host Hilton Yuen mentioned that financiers would recover cost in a period of just 4 months.Around 50 people reportedly acquired the makers throughout the occasion. Although arrangements were signed by financiers with the business referred to as 5th Components Ltd., details about the agreement were not revealed.One purchaser stated that far from the declared HK$ 288 everyday making she only made about HK$ 50 or about $6.30 on her first day of mining. Consequently, her profits dropped to a couple of dollars. So far, the financier was able to make about HK$ 3,000 or approximately$382. The report also suggested that Poon specified that he was simply a speaker at the event and had no ties with the Bitcoin mining company. In addition, he also claimed to have lost about HK$ 1 million or $127,463 after buying 100 systems of the machines.Meanwhile, Yuen apparently acted as representative functioning as a promoter for the mining machines.After Bitcoin prices experienced a sharp decrease and the drop in the variety of Bitcoins offered to financiers, mining maker buyers felt that the pledges made during the workshop did not live up to expectations.Because of this, financiers filed grievances of scams to the Hong Kong authorities.

A request for an authorities examination is in progress, no arrests have been made as of late.Authorities had actually been keeping an eye on crypto mining machines.Chinese authorities in April took 600 Bitcoin mining machines after getting problems of irregular electricity consumption.Then in June, a

male was apprehended on accusations of fraud including crypto mining machines. Reports stated that 50 financiers were scammed of$15 million after the suspect claimed to have adequate supply of mining machines.With Bitcoin’s cost increasing once again,

more cases of financier scams are expected to ensue.