Hong Kong Businessman Accused Of Duping Crypto Investors

Some Hong Kong residents claim that they have been duped into investing in crypto-currency “mining machines,” losing around HK$3 million in a company linked to a flamboyant businessman who was thought to be behind the money stunt last month. On Sunday, four investors requested full refund from Wong Ching Kit, 24.

Since last October, more than 20 complaints from people claiming they have been cheated after investing in Wong’s cryptocurrency mining machines have been filed with the Democratic Party that is helping this Group. Crypto mining is a process that uses a computer program to create a virtual currency.

Between HK$20,000 and HK$1 million each were lost by the investors aged between 20 and 49, according to the party. Some reported earlier to the police.

Wong was widely believed to be behind a Sham Shui Po stunt last month in which at least 6,000 HK$ cash was thrown off high-rise. Their online name is “Coin Young master.” He refused to participate, but moments before banknote stacks flooded off the building, a flashy car came up and Wong stepped out of it and asked the viewers in an online video if they “believed money would fall out of heaven.”

In order to promote cryptocurrencies, Wong runs a Facebook page and several online groups, including “File Cash Coin.” He was arrested on suspicion of public disorderly behavior after the Sham Shui Po incident, but released under bail. He faced no charges as of Sunday.

The investors claimed on Sunday that Wong had misled them to purchase ‘mining devices’ for ‘filecoin’ digital currency. They met Wong’s cryptocurrency business via social media and claimed that their investments could make a profit in three months.

However, it turned out that the mined cryptocurrency was not yet commercialized on the market. They never fulfilled promises of refunds, they said.

An investor affected by this, who called herself as Ms.Chiu, said she had invested over HK$120,000.

“At first, I was told I could get a refund if filecoin could not be launched in time,” she said. “But when we asked for a refund, he used delaying tactics and made different excuses to turn us down.”

The Democrat Ramon Yuen Hoi-man, District Councilor of Sham Shui Po helping investors, urged the government to step up cryptocurrencies regulation measures.

Later, he told the police that he had received a threatening phone call. However, he added that Wong was not mentioned by the caller.

Later, Wong hit the critics in a Facebook post. He didn’t directly comment on the investors’ claims, but said he was targeted unfairly.

“I sell mining machines only but am treated as if I have killed people. When they make money, there is no thank you. When they lose money, they call it a scam,” he said.

“When they make money, they won’t share their profits with me. But when they lose money, they ask me for money back.”

In a smear campaign launched by business competitors last month, Wong denied his claims against his cryptocurrency company.

“Can you define cheating? They say I cheated them. If they made money, would they still say they were cheated? You either make money or lose money in doing business,” he said.

“If a person thinks he has fallen victim to fraud, he should report it to police.”

A police spokesman on Sunday said nine men and one woman aged 29 to 41 had previously claimed that a total HK$940,000 had been cheated against investments in the cryptocurrency business in Wong.

A police source said earlier Wong would be subject to an all-round inquiry including a money laundering investigation, as an eight-digit sum was reported on his bank accounts.

“The 24-year-old has to explain how he ended up with that large sum of money. It could be considered money laundering if one fails to explain the source of income,” the insider said.

Wong was born a Kwan Tsz-kit and worked as an instructor for swimming before. He was convicted of theft and sentenced to 160 hours of community service in 2012. He changed his name afterwards.