Hong Kong’s ‘Young Wizard of Investment’ Indicted for HK$6.9 Million in Bitcoin Mining Scam
HK Stock Market Commentator Indicted In HK$6.9 Million Crypto Scam
Hong Kong Media platform, The Standard, has reported that investors have complained that Raymond Yuen, a prominent stock market commentator, ran a fraud scheme and deprived the people of nearly 7 million Hong Kong Dollars.
Mr. Yuen, the famous market commentator came into spotlight at the turn of the century when he made successful analysis of the Hong Kong stock market. His insights into the financial market earned him the title “The Young Wizard of Investment”.
According to the report published, Mr. Yuen was promoting a crypto mining company. He promised high profits to investors. He even signed agreements with the investors, informing them of a 10-month payback period.
The investors were initially very happy about the high rate of return on investment (ROI), but concerns started to surface when the returns on the investments were coming far below the promised amount. With the low amount of returns, the investors not only worried about the profit to be made, but on the time it would take them to recover their money too.
One of the investors, The Standard reported, had taken a HK$ 200,000 loan in order to invest in the mining company. To the investor’s surprise, only HK$7 were being made per day. If the yield is to remain constant, the ROI (not accounting for inflation and any downtime) stretches out to a little over 78 years– significantly more than the 10 months being promised.
Lack Of Transparency
The investors have complained that the contract is not clear about a number of things, including the profit sharing. They also say that Mr. Yuen had not identified the risks involved in cryptocurrency mining. He had, according to the complaint, even made a fake association of the mining company and the creator of the cryptocurrency that was to be mined.
A District Council lawyer also revealed that the contract included a clause in fine print that essentially meant the investors let go of their right to even file a class action suit.
Mr. Yuen had mainly made his reputation through radio shows on financial investments and even authored a book on how to make sound stock investments.