Hong Kong Warns on Risks of Bitcoin Futures

Hong Kong finance regulator has published a new circular related to bitcoin futures
12 December 2017   1203

On December 11 the Securities and Futures Commission (SFC) of Hong Kong published a circular that reminds that only licensed firms are allowed to offer bitcoin futures within Hong Kong. Investors are also reminded of the risks associated with these products.

Hong Kong investors may be able to trade in bitcoin futures through an intermediary which is a member of these exchanges....The industry is reminded that a party is required to have an appropriate licence with the SFC if it provides any other business services relating to bitcoin futures.

 

The circular of the SFC

According to circular, other forms of cryptocurrency-related investment products are available to investors in the country including cryptocurrency options. Failure to obtain a license to offer such services "may be committing a criminal offence under the SFO".

SFC also reminded investors about the potential risks in trading cryptocurrencies including insufficient liquidity and price volatility.

The circular was published on the first day of trading of the CBOE’s futures contract, which went live late Sunday.

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   277

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.