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Chinese do an ‘MF Global’ burning Bitcoin investors

21st Century Wire says…

It seems someone in China has pulled an ‘MF Global’ on an unsuspecting 500 people – who were left in the lurch after a Chinese Bitcoin investment platform folded this week...

Despite other Bitcoin scandals circulating around the globe, the value has done nothing but skyrocket in recent months.

Chinese authorities are wary of Bitcoin – and for good reason, because it feeds into two traditional favorite Chinese vices: online gambling and money laundering.

Here’s the latest….

Bitcoin trading platform defrauds Chinese investors

 

AFP/Raw Story

An online Bitcoin trading platform aimed at Chinese investors has suddenly closed, leaving hundreds with more than 20 million yuan ($3.3 million) in combined losses, a newspaper said on Thursday.

Hong Kong-registered Global Bond Limited shut down in late October and disappeared before users could withdraw investments from their accounts, the China Business News said.

Bitcoins — a form of digitally-created “e-money” — are stored in a virtual wallet, and can be sent directly to another person, bypassing banks and remaining largely anonymous.

They were created in 2009 in the wake of the global financial crisis by an anonymous programmer who wanted a currency independent of any central bank or financial institution.

Their value has soared in recent months, so much so that Norwegian man who bought $24 worth of them soon after they were invented found his stash valued at $690,000 earlier this year.

The Global Bond platform’s design, which operated like a futures trading exchange, led users to believe they could make profits, attracting them to deposit more funds, the China Business News said.

Continue this story at Raw Story

READ MORE BITCOIN NEWS AT: 21st Century Wire Bitcoin Files

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