Internet Star, Investment Whiz Receiving Crypto Related Complaints
Raymond Yuen, internet star and a commentator for the stock market, has been receiving a number of complaints as he stands accused of having misled a number of web users into investing in crypto mining services.
Crypto mining is the process of introducing new cryptos into the ones that already exist in circulation. When investing in these mining services, investors then share in the profits that come in from the value of the new cryptos.
It has been announced that a total of twelve complaints were made to the Democratic Party against Yuen. The alleged total losses are approximately in the range of HK$10,000 to HK$600,000.
The number of individuals who have joined the list of complainants exceeds twelve since last May, they range in age between 25 and 60 and they include certain professionals, retirees, and also students fresh out of college. Their total investment reached around HK$6.9 million and it’s not yet clear whether any of them had to take out loans to invest.
Yuen started his rise to fame during the early 2000s with his savviness in the stock market. He then hosted 2 radio shows focused on financial investments and later published his own book about stock investments. With his fame and status in the financial world, a lot of investors were interested in signing crypto contracts that he encouraged and that had a payback offer of 10 months. He also encourages investments in crypto mining services via Secret Technology Limited.
The participants in the investment only received a 1% return on their investments. Among them is a complainant whose surname is Chan; she said that she had borrowed an amount of HK$200,000 and invested it in crypto mining. In the end, her investment hardly produced HK$7 in one day, which is way less than what was expected.
The investors further complained that the terms of the contract hadn’t been clearly clarified and that the terms weren’t carefully examined. Sham Shui Po’s district councilor Ramon Yuen Hoi-man criticized Yuen for the extreme exaggeration of returns coming from the investments.
The investors further accused him of not providing full disclosure in regards to the risks involved in investing and also of wrongly claiming that the firm is in affiliation with the crypto founder which makes changing the algorithm and outperforming competitors possible. They were also required to sign away any right to a class action suit.