MyCoin Exchange Disappears, Possibly Taking $387 Million

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Reports have surfaced of MyCoin, a Honk Kong-based Bitcoin exchange, shutting down and disappearing with its users’ funds. Judging by the MyCon’s own reports of having served 3,000 clients, each of which investing $ 12,890 USD, the exchange could have ran off with up to $ 387 million.

The activities of the MyCoin exchange resemble those of a ponzi scheme, which increase suspicions about the exchange stealing user funds upon their closure. Investors said that the Bitcoin exchange promised them a $ 128,979 return on a $ 51,591.60 on a Bitcoin contract. MyCoin also offered extra prizes, such as cars or cash prizes, for people who brought in more investors.

In addition to the suspicious investment promises, MyCoin took on some worrisome operational procedures. In December of 2014, the exchange stopped allowing customers to cash out all of their Bitcoin at one time, saying that they needed to find more clients to buy in before they could resume full cash-outs. Furthermore, the exchange did not pay the market price when users did convert some of their Bitcoin to fiat; MyCoin only paid $ 2.58 per coin, despite the fact that the market price was in the $ 200s.

On January 3, 2015, MyCoin closed down their physical office, citing renovation as the reason for the closure. The company has since blocked the doors to the office.

Clients who are concerned about losing their money are planning on filing police reports on Wednesday.

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