Feeds

Chinese cops cuff Hong Kong Bitcoin scammers

GBL three suspected of making off with MILLIONS

Boost IT visibility and business value

Chinese police have nabbed three people suspected of running Bitcoin exchange GBL, which closed down abruptly in October taking with it over 25 million yuan (£2.5m, $US4.1m) of investors’ money.

The three were arrested all over the country, in Guizhou province, Anhui province and Shenzhen city, according to Xinhua.

They are a 29-year-old suspect surnamed Liu, a 24-year-old man surnamed Jin, and a 33-year-old surnamed Huang.

They are thought to have set up the trading platform back in May, claiming to be based in Hong Kong to add more legitimacy to the scam.

Although warnings about GBL appeared on Bitcoin forums soon after, the money kept on rolling in as eager investors flocked to the site.

By the end of September it had attracted over 4,400 registered users, before closing abruptly on October 26th, police told Xinhua.

Investors were locked out of their accounts and contact details were found to be fake.

There’s no official word on how much money was stolen by the three suspects, but GBL apparently grew to become China’s fourth largest Bitcoin exchange by trading volume.

The largest, BTC China, is still in negotiations with financial regulators on steps which would allow the digital currency to be used to buy goods and services in the country.

However, despite the huge hype surrounding Bitcoin, especially in China, it still hovers in a “grey area”, neither officially recognised nor banned outright, BTC CEO Bobby Lee told Bloomberg this week. ®

The Essential Guide to IT Transformation

More from The Register

next story
Just TWO climate committee MPs contradict IPCC: The two with SCIENCE degrees
'Greenhouse effect is real, but as for the rest of it ...'
'Blow it up': Plods pop round for chat with Commonwealth Games tweeter
You'd better not be talking about the council's housing plans
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
Adam Afriyie MP: Smart meters are NOT so smart
Mega-costly gas 'n' 'leccy totting-up tech not worth it - Tory MP
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.