Jasmine Siu

Monday, February 09, 2015

The investors are among a group of Hong Kong and mainland individuals buying and exchanging the virtual currency bitcoins through Kryptogroup and its Hong Kong-registered transaction platform, mycoin.hk.

Under Kryptogroup's system, bitcoin investors would sign "head contracts" with the group to buy 90 bitcoins at the beginning and accumulate 0.64 bitcoins a day for 12 months.

Their gains would multiply when they signed subcontracts, usually with appealing bonuses.

However, as Kryptogroup allegedly began changing the conditions on December 7 without issuing proper notices, some investors found themselves suddenly unable to invest in new subcontracts under the previous terms or exchange their bitcoins into Hong Kong dollars in accordance with the international market rate.

While the mycoin.hk website remains operational, its phone line is directed to voicemail, and its Tsim Sha Tsui office is closed for "internal renovation," with the company name taken off the building's directory.

An investor surnamed Chan, 81, said she tried contacting the four sales staff who approached her in the first place but to no avail. Many investors were introduced to the investment platform through professionals such as legal executives and property and insurance agents.

An investor surnamed Lau alleged she was tricked by her legal executive to join the platform as she recalled telling him she needed time to think about it, yet her bitcoin accounts were set up in just hours, without her official approval.

Lawmaker Leung Yiu-chung, who is helping the investors, said they were lured by the professional backgrounds of the sales team.

View original post here:

Bitcoin investors claim $3b losses