Patrick Lam, the CEO of Hong Kong-based bitcoin exchange KBBEX, told AllCoinsNews that it has not experienced a slowdown in demand as a result of the highly publicized closure of another Hong Kong bitcoin exchange MyCoin.
Reportedly, more than 3000 bitcoin investors lost a total of around HK$3 billion in MyCoin’s closure. This is based on reports that MyCoin required at least HK$1 million from each customer signing up.
For investors, public, and Hong Kong authorities, it became evident this month that MyCoin was never an “exchange” but a classic pyramid or ponzi scam.
As Lam indicates, “I think the major cause is they are not running a proper exchange, it’s only a ponzi scheme packaged in name of Bitcoin.”
Last week, more than 30 investors approached Hong Kong legislator Leung Yiu-chung to help them recover their money and also filed reports with the Hong Kong Police. Lam has also discussed with Leung ways of helping victims of the MyCoin closure.
Lam told AllCoinsNews, “I have reached out to HK Legislative Councilor Mr. Leung Yiu Chung to offer assistance for those victims about what’s happening and what to do, and perhaps a way to trace their Bitcoin thru blockchain analysis…. ”
Lam also noted that “The report of $3 Billion lost may be highly exaggerated by the media, but the actual number of victims may increase since some victims are from overseas.”
According to industry sources, MyCoin enticed customers by asserting that it had a bitcoin mining partner in Iceland with a bitcoin mining contract that would result in customers tripling their investment at the contract end.
However, last month MyCoin management suddenly changed investment rules by requiring clients to find new clients and to trade 100 times before any withdrawal, promising that the resulting increased trade volume would allow the company to list on the Hong Kong stock market.