CEO of Vietnamese Cryptocurrency Mining Agency Disappears with $35 million

Le Minh Tam, the CEO of Ho Chi Minh Metropolis-based cryptocurrency mining firm Sky Mining, has been AWOL since July 26, in accordance with native information outlet Vnexpress. With the disappearance of his firm, roughly 5,000 buyers stand to lose an estimated $35 million.

Sky Mining is an organization dealing in cryptocurrency mining units. Individuals despatched cash to purchase shares within the units, and reap a share of the earnings. For an funding of between $100 and $5,000, they have been promised a return of 300 p.c in 12 months. They might additionally obtain a mining system, which they might use for 15-18 months earlier than returning it to the corporate.

Time to purchase the dip?

Based on the Saigon Occasions, one feminine investor mentioned that Tam requested chosen clients to gather their machines from the firm’s mining facility in Bien Hoa City on July 26, however they discovered the premises closed and empty. 600 mining machines in whole have been taken by “upkeep employees”. The corporate’s workplace in Phu Nhuan District had additionally been vacated.

A letter from Tam printed in media outlet Thanh Nien mentioned that the mining machines have been not worthwhile and he was pressured to promote them to cowl his losses. He escaped in concern of his life. Then on July 29, Tam posted a video to a Telegram chat group promising to come back again quickly and that the corporate will return to profitability.

Le Minh Hieu, deputy chairman of Sky Mining, tried to kind an interim board of 16 individuals to deal with the disaster, however acquired loss of life threats in opposition to himself and his household from cheated buyers and needed to cancel.

“ has reported this to the police and confirmed proof that we're not responsible,” mentioned Hieu. “We're victims too.”

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Hieu believes that Tam has fled to the US with a big amount of cash. He added that Tam was capable of execute his theft as a result of he had immediately managed all mining actions.

A gaggle of 20 buyers has filed a grievance with native police, and one feminine investor has filed a lawsuit, claiming losses of VND6.25 billion (roughly $269,000).

Nevertheless, Vo Do Thang, Director of the Athena Community Safety Coaching Middle in Ho Chi Minh Metropolis, instructed VNexpress that the possibility of individuals getting their a refund is virtually zero. “At the moment, fashions corresponding to Sky Mining is totally out of the authorized subject,” he mentioned.

On the 26th of July 2018, the State Securities Fee of Vietnam, the nation’s monetary regulator, banned all Vietnamese firms from partaking in cryptocurrency-related actions. This choice was undoubtedly influenced by the occasions of April when two ICOs stole $660 million from an estimated 32,000 buyers. Two startups – Ifan of Singapore and Pincoin of Dubai – labored via a Ho Chi Minh Metropolis-based firm referred to as Fashionable Tech to draw Vietnamese individuals to put money into what have been successfully basic Ponzi schemes.

In January 2018, the State Financial institution of Vietnam enacted a ban on using Bitcoin as authorized tender, on ache of legal prosecution and a wonderful of roughly $9,000. The ban was first proposed in October 2017.

As well as, on July 19, the State Financial institution of Vietnam agreed to implement a ban on the importation of mining units, which had been proposed by the Ministry of Business and Commerce a month earlier. The proposal was itself a response to a request from the Ministry of Finance in Might.

Information outlet Xinhua reported in June that 9,300 mining units have been imported into Vietnam in 2017 and 6,300 within the first 4 months of 2018.