Bitcoin firm HXCex being probed after customer says he lost HK$67,000

Police are investigating the disappearance of tens of thousands of dollars worth of the virtual currency bitcoin in a move that could open the floodgates for more potential victims to come forward.

Scrutiny has fallen on the conduct of industry newcomer Hong Kong Crypto Exchange (HKCex), whose operation appears to have ground to a halt. Customers said they have been unable to reach the company, which opened for business last month, and its website returns an error message.

The inquiry comes as Hong Kong hosts its first major conference on bitcoins starting tomorrow.

Dominic Rivers, 34, a former IT engineer, reported that he had lost HK$67,000.

A police spokeswoman said: "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. Investigations are under way."

It is understood there may be more potential victims on the mainland.