[Russian Rocket]

Hong Kong (AFP) - Investors in a Hong Kong-based Bitcoin trading company fear they have fallen victim to a scam after it closed down, a lawmaker said Monday, adding losses could total HK$3 billion ($387 million).

Leung Yiu-chung said his office recently received reports from dozens of investors in Hong Kong who paid a total of HK$40 million ($5.16 million) into the scheme run online by MyCoin, but the total loss may be vastly more.
"The number of cases is increasing. These two days I received calls about more than 30 cases. We estimate more than 3,000 people and HK$3 billion are involved," he told AFP.
One investor said she spent HK$1.3 million in swap options for the virtual currency last September.
She said salespersons had told her she would recoup her investment in four months and make around 200-300 percent profit in one year.
The cryptocurrency was created in 2009 by a computer algorithm designed by one or more anonymous people.
It has since become a form of e-money that offers a largely anonymous payment system and can be stored either virtually or on a user's hard drive.
But its development has been marred by concerns about links to illegal activities and a lack of oversight.
Tokyo-based MtGox, one of the longest-established Bitcoin exchanges, collapsed due to a suspected theft worth nearly half a billion dollars.

[TheMoneyShot]

The blind leading the blind.

[stevenash]

Who didn't see something like this coming?
Go figure, and unregulated monetary system falling victim to a scam.

[Russian Rocket]

the sad part is that this is not the first time it happened...and people still continue to "invest" in this virtual nonsense

[Optional]

She said salespersons had told her she would recoup her investment in four months and make around 200-300 percent profit in one year.

I hope someone mentions the Nigerian scam to her before she falls for that too.

Hard to feel too sorry for people that don't engage their brain, or let greed over ride common sense.

[TheMoneyShot]

When is Sam Odom going to chime in???

[Russian Rocket]

I hope someone mentions the Nigerian scam to her before she falls for that too.

Hard to feel too sorry for people that don't engage their brain, or let greed over ride common sense.

very true

[Footballtime]

I would rather invest in Food Stamps then Bit coins.........

[Russian Rocket]

When is Sam Odom going to chime in???

Money, Sammy is barreled in I think...he hasn't made a post in over 3 weeks...last time he posted about BC the price was about $100 higher than what it is right now...so ya know

[shaunovery]

Knew something like this would happen , would never use bit coins

[TheMoneyShot]

I've mentioned this a million times... why do people continue to promote this new level of trading when there are loopholes everywhere? This so called currency fluctuates for no apparent reason. But people constantly see hope in this Bitcoin.

It's sad enough that we have continuous fraud involving our own countries currency... now we have to worry about this Sesame Street coin. Why am I against it??? Zero regulation. No one has your back. It's like going upstream with no paddle.

If the CC companies didn't offer you the zero liability clause for fraudulent charges... would you still use your CC's? No you wouldn't. Again... point is... someone is always protecting you. With Bitcoin... who's protecting you? No one.

[jjgold]

its an extreme high risk currency

EXTREME

if it is not regulated by usa gov't it will fail

[Russian Rocket]

I've mentioned this a million times... why do people continue to promote this new level of trading when there are loopholes everywhere? This so called currency fluctuates for no apparent reason. But people constantly see hope in this Bitcoin.

It's sad enough that we have continuous fraud involving our own countries currency... now we have to worry about this Sesame Street coin. Why am I against it??? Zero regulation. No one has your back. It's like going upstream with no paddle.

If the CC companies didn't offer you the zero liability clause for fraudulent charges... would you still use your CC's? No you wouldn't. Again... point is... someone is always protecting you. With Bitcoin... who's protecting you? No one.

[Optional]

I've mentioned this a million times... why do people continue to promote this new level of trading when there are loopholes everywhere? This so called currency fluctuates for no apparent reason. But people constantly see hope in this Bitcoin.

It's sad enough that we have continuous fraud involving our own countries currency... now we have to worry about this Sesame Street coin. Why am I against it??? Zero regulation. No one has your back. It's like going upstream with no paddle.

If the CC companies didn't offer you the zero liability clause for fraudulent charges... would you still use your CC's? No you wouldn't. Again... point is... someone is always protecting you. With Bitcoin... who's protecting you? No one.

You've probably been answered a million times that most people interested in it in this industry are all about the ease, cost and speed of money transfer with it.

Even the gung-ho pro-bitcoin posters here hardly talk about it as an investment vehicle, it's all about the money transfer system.

It's only the Bitcoin bashers that act like the day to day price is of any concern, not the users.

And even with the volatility of price I am yet to see anyone with a horror story about losing a lot of money during the transfer process.

The banking system leaches off almost every transaction that is made. Its not needed anymore. It's an unnoticed parasite on every person in the world.

The philosophy behind Bitcoin is a world changer for so much more than just gambling and darker uses.

[MoMoneyMoVaughn]

The unseen benefits of Bretton Woods?

[raiders72001]

You've probably been answered a million times that most people interested in it in this industry are all about the ease, cost and speed of money transfer with it.

Even the gung-ho pro-bitcoin posters here hardly talk about it as an investment vehicle, it's all about the money transfer system.

It's only the Bitcoin bashers that act like the day to day price is of any concern, not the users.

And even with the volatility of price I am yet to see anyone with a horror story about losing a lot of money during the transfer process.

The banking system leaches off almost every transaction that is made. Its not needed anymore. It's an unnoticed parasite on every person in the world.

The philosophy behind Bitcoin is a world changer for so much more than just gambling and darker uses.

This is a great post. Bitcoins are just a means of transferring money for those using it to gamble. The theft that just occurred is of no consequence.

[stevenash]

I've mentioned this a million times... why do people continue to promote this new level of trading when there are loopholes everywhere? This so called currency fluctuates for no apparent reason. But people constantly see hope in this Bitcoin.

It's sad enough that we have continuous fraud involving our own countries currency... now we have to worry about this Sesame Street coin. Why am I against it??? Zero regulation. No one has your back. It's like going upstream with no paddle.

If the CC companies didn't offer you the zero liability clause for fraudulent charges... would you still use your CC's? No you wouldn't. Again... point is... someone is always protecting you. With Bitcoin... who's protecting you? No one.

Me too, plenty of times.
I had to stop, Sammy kept coming at me.

I covered the bitcoin angle from an I/T analyst point of view.
Bitcoin is so flawed in many areas.
Just because you are encrypted, doesn't mean the back end is safe.

[stevenash]

This is a great post. Bitcoins are just a means of transferring money for those using it to gamble. The theft that just occurred is of no consequence.

And as an IT professional since I got out of school, trust me when I say, the cyber thiefs are not one but three steps ahead the I/T police.
The good cyber guys are out numbered by the cyber theives 3 to 1.

And they are wicked smart. They got the hardware, they got the software, and they got the knowledge and know how to use it.
CC card theivery is childs play to them, there is a syndicate ndicate in USSR that is so sophisticated we can't stop them, and we know who they are to boot.

What makes ISIS such a pain in the ass, is 10 percent of their gang is computer smart too.
Future wars will be cyber wars, hand to hand combat is just about gone.

[raiders72001]

There seems to be a huge dichotomy of thought here at SBR on bitcoins that is unwavering.

1. Those using bitcoins as a means to transfer money. Those that take the plunge never look back.

2. Naysayers - Pro bitcoin guys will never change the minds of the naysayers.

[stevenash]

2. Naysayers - Pro bitcoin guys will never change the minds of the naysayers.

Which is sad because Sammy kept accusing me of wishing failure on him, hardly, I want everybody to have success, I was pointing out ways bitcoins are not safe in many aspects, and backing my opinions up with stone cold facts as to how things can go bad.

[raiders72001]

And as an IT professional since I got out of school, trust me when I say, the cyber thiefs are not one but three steps ahead the I/T police.
The good cyber guys are out numbered by the cyber theives 3 to 1.

And they are wicked smart. They got the hardware, they got the software, and they got the knowledge and know how to use it.
CC card theivery is childs play to them, there is a syndicate ndicate in USSR that is so sophisticated we can't stop them, and we know who they are to boot.

What makes ISIS such a pain in the ass, is 10 percent of their gang is computer smart too.
Future wars will be cyber wars, hand to hand combat is just about gone.

A much higher percentage of tech guys and programmers are pro bitcoin rather than anti bitcoin.

Bank transfers are done daily electronically with no problems. Bitcoins are just a decentralized banking system rather than centralized.

[raiders72001]

Why aren't criminals hacking into all of our bank accounts?

[Art Vandeleigh]

In this thread they are saying this issue is overblown and has been known about for several months in Far East.

https://bitcointalk.org/index.php?topic=950348.0

[jjgold]

Bank account hacking is much more difficult

So many security measures

Bigcoin it's not too hard to run away with peoples money

Keep the balance is very low in bitcoin operations

[raiders72001]

Bank account hacking is much more difficult

So many security measures

Bigcoin it's not too hard to run away with peoples money

Keep the balance is very low in bitcoin operations

It all has to do with security precautions. If you are an investor, you will want to keep your coins in cold storage. It prevents losing your bitcoins if your computer is compromised.

[raiders72001]

..]These news are ALL USING THE FAKE NUMBER[...]

[...]Most people in Mainland China and Hong Kong SAR know about this situation at long long time ago (people talked about this at many Chinese bitcoin forum since the end of 2014), Now today the exchanger finally gone down as everyone's expected.[...]

[...]A really small exchanger gone down, less than may be let's say half million HKD(including real bitcoins deposited at there) is lost [...]

[...]If you are waiting for Chinese market to panic, give it up, most Chinese know the mycoin.hk exchanger would runoff at a half year ago[...]

Very low number of coins were lost in this scam. It operated in HKD. Ppl sent in their fiat money, in return got an account at the exchange, and a number of IOU coins they could not withdraw.

It was a straight out scam. Started fake cloud mining, took money from people and run. Just like Lunamine, Hashie, PB and many other. No need to panic life goes on

......

[Russian Rocket]

it made a front page on Yahoo news with that "fake" number...I'm sure instead we can just listen to some OP from Bitcoins forum, who's more than likely ended up holding a bag full of overvalued coins

[jjgold]

Just be careful

Coinbase seems legit

Who really knows

[stevenash]

A much higher percentage of tech guys and programmers are pro bitcoin rather than anti bitcoin.

Finish the sentence.
Bitcoin I/T miners get paid in bitcoins, what do you think their position is going to be?
And those miners that get paid, a big percentage of them exchange the bitcoins back to currency.

Dude, it's a shady business, you have all the transactions recorded on a block or a list if you will.
Everybody who has done bitcoin business has access to this information
The miner verifies the transactions, and record that in a computer general ledger.

Then the miners take all the transactions on the ledger and code it, called a hash.
Then they take the hash and disguise that some more, so the information looks like the data Jack Bauer used on '24'

But, if that hash is tampered with that just one symbol is added or deleted, the whole transaction list (block) is seriously out of whack.

[raiders72001]

it made a front page on Yahoo news with that "fake" number...I'm sure instead we can just listen to some OP from Bitcoins forum, who's more than likely ended up holding a bag full of overvalued coins

What difference does the number make to a person that is using bitcoins to gamble? We only have to keep a few days worth of betting on hand since we can transfer so easily.

[raiders72001]

Finish the sentence.
Bitcoin I/T miners get paid in bitcoins, what do you think their position is going to be?
And those miners that get paid, a big percentage of them exchange the bitcoins back to currency.

Dude, it's a shady business, you have all the transactions recorded on a block or a list if you will.
Everybody who has done bitcoin business has access to this information
The miner verifies the transactions, and record that in a computer general ledger.

Then the miners take all the transactions on the ledger and code it, called a hash.
Then they take the hash and disguise that some more, so the information looks like the data Jack Bauer used on '24'

But, if that hash is tampered with that just one symbol is added or deleted, the whole transaction list (block) is seriously out of whack.

There are mixers. If you don't want a trail, you won't have a trail. I use https://bitmixer.io/

For the record, I'm not trying to get in a heated argument with you here. I'm just discussing my point of view. You may open my eyes to something.

[stevenash]

There are mixers. If you don't want a trail, you won't have a trail. I use https://bitmixer.io/

For the record, I'm not trying to get in a heated argument with you here. I'm just discussing my point of view. You may open my eyes to something.

No, no, no heated arguments, it's an intelligent spirited discussion.

Point is, you have very smart people, that knows tech things the layman will never learn.
And there are a lot of these very smart people handling the transactions in ways normal yesterday's best accountants can't comprehend.
So, all it takes is one or two, or God forbid a syndicate of bad cyber guys to get a hold of certain pieces of information, well, you can guess the rest.

[jjgold]

Nashy knows an awful lot

Raiders also

[Russian Rocket]

What difference does the number make to a person that is using bitcoins to gamble? We only have to keep a few days worth of betting on hand since we can transfer so easily.

I like that theory...and how many people are out there who are actually holding more than just a few days worth of coins on hand? what happens to them?

[stevenash]

There are mixers. If you don't want a trail, you won't have a trail. I use https://bitmixer.io/

For the record, I'm not trying to get in a heated argument with you here. I'm just discussing my point of view. You may open my eyes to something.

OK, I ran bitmixerio through the system as we like to say.

Gets 85 percent security rating (that's a good thing)
Bitshe owns it, this comes as no surprise.
Resides on a cloud, not a big fan of the cloud myself, but never mind.

Here's the results.
(safe now, pray there is no virus developed that can penetrate it in the future though, for now it's trustworthy)

ip Address: 162.159.240.143
Hosting Service: "CloudFlare"
Hosting City: San Francisco
Hosting Region: CA
Hosting Postal: 94107
Hosting Country: United States
Domain Created:
Domain Expires: 2014-09-20
Domain Life: 0
Ping: 1778
Speed: Slow
Network Name: CloudFlare, Inc.
Network Country: United States

See the ping rate?

Ping is an internet metric that measures how fast a response you get back once you send it.
1778 is kind of slow.