Bitcoin 'fraud' spurs HKMA warning over virtual currency

Hong Kong

HONG Kong's central bank has warned people against investing in virtual currencies amid local media reports that a bitcoin exchange may have run off with US$387 million in client funds - making it potentially the biggest bitcoin scandal after last year's bankruptcy at Tokyo-based Mt.Gox.

The South China Morning Post reported on Monday that clients of Hong Kong-based MyCoin had approached a local lawmaker alleging the company absconded with their money. An assistant for Legislative Council member Leung Yiu-chung told Reuters that Mr Leung had received more than 15 complaints from MyCoin clients regarding the alleged fraud, and these would be passed on to the police on Wednesday.