Hong Kong Entrepreneur Who ‘Made It Rain’ Arrested for Crypto Mining Fraud
Bitcoin millionaire, Wong Ching-kit, previously involved in “making it rain cash” on the streets of Hong Kong has been reportedly arrested for mining-related fraud, as per a report from the South China Morning Post on Thursday, Feb. 28.
The report suggests that the 25-year old businessman and his 20-year-old colleague have been arrested by Commercial Crime Bureau officers at their office in Hong Kong. The duo has been held in custody for conspiring to defraud investors by selling them cryptocurrency mining machines. The details for the miner-related sales haven’t been revealed, as of now.
A few months earlier, Wong, a purported Bitcoin millionaire stated on his social media accounts that bitcoin will make it rain and in order to prove his point, he “making it rain cash” on the streets of Hong Kong.
Earlier in January, Wong was accused of misleading numerous investors to purchase mining hardware for a crypto token dubbed as “Filecoin.” Allegedly he promised his clients profits on their investments within three months. However, the investors later learned that the coin was not tradeable.
At the time, SMCP reported that the Democratic Party was helping those affected by the alleged fraud, said it received more than 20 complaints since October 2018. The total amount of their losses is estimated to be around HK$3 million ($383,000). Some investors have to demand a full refund on their funds.
As the complaints started building up, the police promised to start a probe into Wong’s activities, which included suspected money laundering. The entrepreneur denied the accusations claiming that he was being treated as if he killed people instead of selling mining machines.