Multimillion Scam Busted In South Korea

Many people were indicted on embezzlement charges and some top investors are on the run and have been put on an Interpol wanted list
20 December 2017   1474

South Korean authorities on Wednesday indicted over two dozen people associated with a cryptocurrency operation for their involvement in a multimillion dollar scam. The large-scale fraud scheme was being run by Mining Max, a cryptocurrency company that has a mining farm in Seoul.

The suspects, which include the company’s chairman and vice chairman, are accused of embezzling about $250 million from 18,000 investors in 54 countries, including the United States, South Korea, China and Japan. Many people were indicted on embezzlement charges but were not detained and some top investors, are on the run and have been put on an Interpol wanted list.

Prosecutors also believe only about $80 million of the investors' money was spent on buying equipment to mine cryptocurrency with the rest of it being used by the management for personal enrichment or to reward the top investors. About $110 million is thought to have been stashed in offshore bank accounts.

Chinese Miners to be Driving Force of Bear Market

Miners are playing short in order to get some profit
07 December 2018   102

As the 8btc notes, the new generation of miners are less likely to keep mined coins, preferring to hedge price risks by opening short positions.

To survive the notorious “cryptocurrency winter”, miners increasingly have to become experts of the financial market and risk managers, using the maximum functionality of trading platforms. Short positions sometimes harm the miners themselves, struggling to maintain profitability.

Everyone is short-seller, we do this for self-defense but that will lead to a further decline in cryptocurrency price… Without short selling, we will be eliminated ultimately, but if everybody keeps doing this, we will finally die together, which is quite heroic.
 

Jin

Miner, China

As noted by jin, he mines cryptocurrency partly on video cards. Miner began operations in October 2017. According to him, in the first two months, Jin Xin earned more than in the past three years in other areas of activity.

However, this year the situation has changed dramatically and the miner had to develop his own strategy for surviving in a bear market. To build capacity, he bought cheaply used GPU farms from those who wished to quit the game. Immediately after the price fell below the break-even point, Jin turned off the farm and sold the video card to video game lovers. After waiting for some price recovery, he again bought up video cards in the secondary market and sold them to miners.