Police Investigating Hong Kong Crypto Exchange as Complaints Come Up

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Background of financial currency Bitcoin

Many investors who were attracted by the Hong Kong Crypto Exchange or HKCex now feel cheated as the company appears to have shut its operations. When many of the aggrieved customers complained to the police, the latter started investigating the entire affair. Now it looks like there could be even graver scam at the spot.

As the cops are investigating the disappearance of tens of thousands of dollars worth of the Bitcoin, it appears that the process may open the floodgates for more potential victims to come forward. Earlier, many customers complained that the HKCex’s website went offline suddenly, which the company claimed happened due to denial-of-service (DDoS) attack.

The customers started suspecting the excuse as some of them were from technical background and they realized that though the attack was feasible, since it happened so much within exchanges, they would have expected them to have learned from other exchanges. Many of them saw Mt. Gox collapse happening in their front and that scared them a lot.

Now as scrutiny has fallen on the conduct of Hong Kong Crypto Exchange, a lot of customers say they have been unable to reach the company. The risk of losing investment to a company that opened its business last month is a warning sign for many investors as well. This may further decrease trust for Bitcoin companies among potential investors.

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Investors Ask for Thorough Investigation to Know the Truth

In a statement the police say that the informant reported that he stored some virtual currency in a company providing services on storage and trading in virtual currency in mid-May but discovered later he was unable to retrieve money from the company. The cops are trying their level best to investigate the entire scam and help the victims.

It is understood there may be more potential victims on the mainland and the number of complainants may go higher as new facts are unraveled. The first of its kind, the scam may hit the future of the digital currency as the people and government may start looking at them with suspicion.

The investors who lost their investment say that they hope the authorities would take internet fraud seriously. On the other hand, HKCex spokesman Lavin Lam, in an e-mail last month, had said that the company was an honest and transparent business and had all the necessary permits and licenses to conduct this activity.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com