Hong Kong Miner Flees With $6.3 Million Investor’s Money
Authorities in Hong Kong are looking into a case where a crypto mining firm owner has vanished with approximately $2.5 million. The matter was reported to the police by affected residents.
The firm at the centre of the fraud is associated with Dennis Lau. Lau is the proprietor of Forger Esports. He ventured into the mining business early this year.
Early in January, the company informed attendees of a seminar that plans were underway to establish a platform with the potential to earn $25,500 a month. For investors who will take part, they were promised fixed return gains.
Reports indicate that trouble began last month when payments were not remitted while Lau went mute. Police records indicate that Lau owes investors over $6.3 million. The amount is based on the first investment deposits and expected profits.
The developments come at a time when the AMC notified residents about the FUD that many authorities throw at digital currencies. The statement said that such commodities are risky. Sometimes they are linked to illegal activities such as money laundering and terrorism. The authority further warned financial institutions against taking part directly or indirectly in the activity.
Over the recent months, miners have faced a tough time, especially from regulators. Recently, Apple outlawed some apps linked with mining. According to the giant tech firm, the apps would only be allowed if the mining is conducted on an outside platform.
In China, a man allegedly swindled $15 million from potential clients who had an interest in buying mining devices. The man was unable to pay for the devices due to high demand.
Last week, another man from Vietnam fled with stolen $35 million. The man who serves as a CEO of a mining firm fled due to the drop in bitcoin prices. It is believed that Lau must have faced a similar situation.