Hong Kong cryptocurrency operators warn against fake websites

Hong Kong’s cryptocurrency operators have banded together to warn investors about fake websites and other scams.

A  Dash Foundation spokesman said a Hong Kong-based fake website was using the Darkcoin name and logo, offering unrealistic 40pc returns and, in typical pyramid-scheme style, was offering investors benefits to bring in new members. The Dash Foundation and Bitcoin Hong Kong have reported the fake website to Google. 

Fernando Gutierrez, vice-chairman of the newly renamed Dash Foundation, says it’s vital investors do their homework before investing in cryprocurrencies.

“The only way to avoid scams is for investors to take responsibility and do their research … We have been working with [Bitcoin] Hong Kong to report the scams we detect so they publish them in their lists. When users contact us, we refer them to this list so they can avoid the scams we know about and any others that have been detected.”

The call comes in the wake of police action over an alleged pyramid scam in Hong Kong involving MyCoin, a bitcoin-trading platform which collapsed in February. According to a police report, more than 50 people are reported to have fallen to the alleged scam, which involves sums totalling HK$74 million.