Five Arrested In the MyCoin Scheme Case 

Unbelievable ... the police hove done a good job. I can't believe I just said that

The Arrest 

Five individuals have been arrested by Hong Kong police forces in connection with the collapse of MyCoin, an alleged bitcoin trading platform.

The arrests were made as part of a broader hunt for individuals associated with MyCoin, which is believed to have cost investors millions of dollars in losses for fraudulent activities. The five were arrested for conspiracy to defraud, according to the South China Morning Post.

The individuals taken into custody on 5th March were allegedly involved with soliciting funds for the scheme and holding events to attract potential investors. Hong Kong police searched the home of at least one of those arrested the same evening, the newspaper said

The Morning Post reported those arrested have not been charged with any crimes:

“One of the women was picked up when officers boarded a casino ship anchored off North Point yesterday morning. Police caught the other four at their homes in Yuen Long, Tin Shui Wai, Wong Tai Sin and North Point."
The arrests come weeks after news first broke that Chinese investors were defrauded by MyCoin.

✎ Hence, the "unbelievable" statement above,. We broke this news on Feb 9th: Original Story here.
The Hong Kong Commercial Crime Bureau (CCB) has since announced that 43 investors may have lost roughly $8.1m as a result of attempted business with Mycoin.  

✎ Just a tad down from the original $400 million we were first told

Investigation continues

Hong Kong law enforcement officials continue to look for individuals connected with an investment company named Rich Might Investment, including its former director William Dennis Atwood.

It remains unclear whether MyCoin, marketed as a bitcoin exchange for local investors, ever actually held deposits of the digital currency. Early reports suggest that MyCoin may have functioned as a pyramid or Ponzi scheme. ✎ Ya think?

At least one investor has claimed that the company promised payouts if more investors were referred to the scheme.

✎ Obviously that's a Ponzi, but i think the scam was a bit more simple than that. Get some investment funds, build a cool site, go by the Open an Exchange 101 handout.
Open an Exchange 101 -
In this case however, they decided to just make a clean break for it, instead of all the conspiracy theory, I guess there is something to say for learning from others. When you try something new, you take a risk. That's why they are behind bars, and Mt. Gox, so remains abroad. 
Being original can be respected, and at least they just stole the damn money instead of leaving people hanging for a year wondering what happened (some people, most of us already know what happened), but being a dumbass is just plain stupid. Of course, any kind of shady practice is pretty stupid to begin with, but this one is pretty damn funny, and they will get what they deserve. 
I find myself in new territory, and I must commend the fine job of the Hong Kong police department for a "job well done" (trust me, it hurt as much to type that as it did for you to read it). Credit should be given where credit is due, and although I hand that out less than most, I do hand it out. Perhaps law enforcement worldwide can take notice of this and start doing their damn jobs now. So I end it with this: 
To the Hong Kong police Department: Regarding the MyCoin investigation, and recent arrests: "Good Job!"  -dinbits

❖ Originally Published as: "Police Arrest Five in MyCoin Bitcoin Exchange Scheme Case
• ❖  Original Story by Stan Higgins    Commentary by dinbits  • ❖ 

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