Hong Kong police makes arrest in MyCoin case

Hong Kong police arrested five persons in connection to the sudden disappearance of MyCoin, a bitcoin trading platform, which cost investors millions of dollars in losses for fraudulent activities, according to the South China Morning Post.

The Hong Kong Commercial Crime Bureau (CCB) reported that 43 investors may have lost nearly $8.1m as a result of the fraud.

It is still not clear whether MyCoin, which was marketed as a bitcoin exchange for local investors, actually held deposits of bitcoin as reports indicate that it may have operated as a pyramid or Ponzi scheme.