Another Day, Another 400 Million Stolen: Hong Kong's MyCoin Vanishes

MyCoin vanished like a fart in the wind, getting away without a trace and 300 MM USD

Now you see them, now you don't

It's magic! MyCoin (obviously now called TheirCoin) has up an vanished into the thin crisp Hong Kong air. Don't worry now, they are not going alone, so they won't be lonely, they'll have your money with them to keep them company. I imagine it'll take a while to count nearly over 300 Million.

Let's see here, 5.2 Million (Bitstamp), 1.1 Million (EgoPay), and who knows how much from HashProfit (yeah they claim to be paying it back, but I doubt it). Well folks, that's chump change, MyCoin customers just lost over 340 Million.

Instead of the normal CEO blog posts, claims of "Inside Job", service shutdown, and all that mess, MyCoin decided to do it the easy way and just skip town. Shocking? Not really.

MyCoin has been viewed as a likely Ponzi scheme since their inception. The one-stop-do-it-all-make-you-a-fortune website, forgot one additional service they were planning to offer, magic. Right before your very eyes, they can take all of your money (stored in accounts with them), and make it dissapear.

Apparenty, they were pretty good at that last one, because they pulled it off. They are gone, so is your money. I do say your money, because I smelled this scam a mile away and stay the hell away from it.

Here a Ponzi, There a Ponzi

SEC eyes GAW Miners 

As for the rest, Ponzi schemes never exceed their life cycle, and they always fail. It's not a surprise. GAW Miners is likely about to be cracked open by the SEC shortly, and revealed as a Ponzi, which will be no big surprise either. HashFaster, one of the most blatant Ponzi's, managed to pull this off without anyone knowing. Crypto-Trade shutdown a week ago, as we reported here, most likely buying themselves a 90 head start while its customers sit around with their thumbs up their asses.

Just for the record, Ponzi's are illegal, they will fail, and people are going to get burned, however, there are two sides to every coin.

Just because you have an investment in a suspected Ponzi,, doesn't mean you are going down in flames. If you suspect a Ponzi, get out, but if you got in early, you might be able to stay just long enough, and quit just early enough, to make a profit.

Official dinbits Advice, Plus

Just to cover my ass. The aforementioned, is not advice, by any means, my official advice on Ponzi's is to "stay away", but just because you find yourself in a bad situation, doesn't mean you have to kiss your hard earned cash goodbye, you can take whatever you can get, and break even or sometimes turn a small profit, if you are lucky enough. Best bet is to follow my "official advice".

Ok, ass covered, coffee poured, and off I go to find out more about this. Obviously we will contact MyCoin so that we can officially not hear from them, and can then officially tell you that they provided no official comment, but that has yet to occur. It will, officially, here in about an hour.

UPDATE 4/09/2015: Five Arrested in MyCoin Scheme Case.