Mining collapse: CEO absconds as another cryptocurrency firm implodes in Vietnam
Over a dozen investors of a cryptocurrency mining company have claimed to be victims of a fraud case after the company's director went missing, allegedly with their money.
Le Minh Tam, CEO of Sky Mining, met with investors in April 2018.
Investors seeking the company's main office in Phu Nhuan District found the building closed and the company nameplate removed.
They also found that all 600 mining machines in the company's factory in the neighboring Dong Nai Province's Bien Hoa Town had been taken away by a group of people claiming to be maintenance workers.
They suspected that Tam had run away with $35 million from investors.
‘We are victims, too’
The deputy chairman of the company, Le Minh Hieu, said that he has formed a temporary board of 16 people to support investors and calculate the remaining asset of the company.
Hieu said that Tam has gone to the U.S., taking all the money of the company and its investors. He said he was not clear about the details of the company’s assets as Tam had directly managed the mining rigs and storage.
“[The board] has reported this to the police and showed evidence that we are not guilty,” said Hieu, who said many investors have threatened to hurt his family.
“We are victims too,” he told VnExpress.
A group of 20 investors have filed a petition on the alleged fraud with the police of Ward 9 in Phu Nhuan District, where Sky Mining was located.
Sky Mining organized several events to attract investors. Screenshot taken from Sky Mining's video on Youtube
‘Largest’ in Vietnam
On its website, Sky Mining claimed to specialize in purchasing computers to solve algorithms, a process known as cryptocurrency mining.
It invited investors to buy a computer system that performs the necessary computations for mining, known as the mining rig.
Investors need to pay $100 to $5,000 for each of these rigs, which will be kept at Sky Mining’s 26 storage spots all over the country for mining.
Sky Mining promises that after 12 months, investors would earn back all their initial investment in addition to a profit of up to 300 percent. Investors will have to return the mining machines to Sky Mining after that period.
Active since March, the company has acquired 7,000 mining rigs, investors said.
It also promised to pay commission to investors who invite more people to join the company.
The company hosted numerous events to attract investors in Hanoi and HCMC, where leaders of Sky Mining claimed that it was the “largest” cryptocurrency mining company in Vietnam.
After two days of hiding, Sky Mining CEO Tam published a note on a Facebook group for investors on Wednesday, apologizing for the “everything.”
Tam said that the market was unpredictable, mining rig value had dropped drastically and profitability had fallen.
“My last resort is to stay hidden from public to protect my life,” he said.
He also told investors to go to the company to recover the capital they have invested, and that after all the work is done, he would declare bankruptcy.
But when investors reached the office, it was empty.
The Sky Mining fraud is similar to that of another tech company in Ho Chi Minh City’s District 1 that was stormed by investors demanding refunds in April.
The investors said that the IT firm, Modern Tech, had cheated them of VND15 trillion ($650 million) with a cryptocurrency ponzi scheme.
The modus operandi was similar to other scams. The company guaranteed that the lowest interest investors would receive was 48 percent per month, with a payback period of less than four months.
The alleged $650 million loss is 150 times larger than Modern Tech’s initial equity of $4.4 million invested by a group of only eight people who founded the company in October 2017.
Modern Tech representatives until now have not responded to the accusations, and its founders have remained incommunicado.
Vietnam imported a total of 6,400 cryptocurrency mining systems in the first four months of the year, according to official data.
The country has constantly been in the top five countries with the highest traffic to the Bitcoin trading platform and Bitcoin news site, CryptoCompare data shows.
Despite proposals to legalize Bitcoin and other cryptocurrencies, authorities have asserted that they are not legitimate in Vietnam.
Palm Garden Beach Resort & Spa – Your own get-away paradise
11/20/2015 6:18:14 AM
Le Petit Coin de Saigon: Taste fine Western flavours at affordable price
11/23/2015 10:45:40 AM
Au Lac Do Brazil opens in Nha Trang coastal city
12/1/2015 8:44:41 PM
Top of the Town Bar & Restaurant reopens
12/21/2015 2:16:22 PM
Taste the difference with Tra Vinh style noodles
1/5/2016 11:02:29 AM
Hark back to the seventies in a quiet HCM City alley
11/18/2016 2:12:43 PM
Century-old French colonial building in Saigon stands to be demolished
5/4/2018 11:04:58 AM
Bad signal: MobiFone refunded after failed pay TV investment deal
5/4/2018 11:09:10 AM
Fintech use is a must for Asia-Pacific economies: seminars
5/4/2018 11:19:46 AM
Foreigners allowed to own 49% of commodity exchange
5/4/2018 11:24:39 AM
2nd Annual Canada Green Day
5/7/2018 3:51:53 PM
Foreign transportation apps ready to ride in Vietnam
5/17/2018 5:10:56 PM
Vietnam plans etiquette code for social media users
5/20/2018 9:01:38 AM
Finance Minister: VAT not to be raised, property tax meant to deter corruption
5/27/2018 9:36:17 PM
Ministry of Health proposes ban on beer advertisement
5/27/2018 9:50:28 PM
Footwear giants shift outsourcing from China to Vietnam
6/2/2018 4:59:44 PM
Vietjet to launch Hanoi – Osaka direct route in late-2018
6/2/2018 5:06:15 PM
Inter Phuc Quoc: InterContinental® Phu Quoc Long Beach Resort is opening today
6/21/2018 10:24:52 AM
VinFast and GM sign landmark strategic partnership agreement in Vietnam
7/2/2018 11:17:36 AM
Italy wins Da Nang international fireworks contest
7/2/2018 11:20:56 AM
ITE HCMC 2018: The Definitive Global Travel Event Not To Be Missed
7/21/2018 2:27:35 PM
Dollar/đồng exchange rate cools down
7/26/2018 10:15:29 PM
CHILL DINING: World Luxury Restaurant Awards 2018
8/10/2018 8:10:51 AM
HCMC, Hanoi main locations for hotel acquisitions in Vietnam
9/3/2018 1:03:31 PM
OKTOBERFEST VIETNAM 2018
9/11/2018 10:01:07 PM
Why urban tech is the hottest investment in town
10/16/2018 10:25:04 AM
THE MAGNIFICENT 3 YEARS ANNIVERSARY OF AIR 360 SKY LOUNGE
11/6/2018 2:30:36 PM
Data Centres: Powering Asia’s Digital Boom
11/7/2018 8:42:02 AM
No customer had money stolen after alleged data leak: State Bank
11/10/2018 3:29:26 PM
Long Hau Industrial Park: Launching Event of High-rise factory
11/14/2018 8:34:36 AM
Conglomerate Vingroup to start $4,5mn Vietnamese genome project
12/9/2018 11:22:55 PM
Heavy rains batter Vietnam's central coast, flood city streets
12/9/2018 11:27:46 PM
Phu Quoc casino gets nod, Vietnamese can gamble there
12/26/2018 2:51:18 PM
Phú Quốc casino becomes 1st to allow Vietnamese
1/24/2019 8:56:39 AM
Keppel to sell 70 pct stake in Vietnam waterfront township
1/29/2019 9:07:49 AM
Prime Minister opens New Year’s trading session
2/15/2019 9:39:48 AM
Dr Philipp Rosler : VinaCapital Ventures names Việt Nam-born former German vice chancellor advisory board chairman
3/16/2019 9:22:43 AM
EUROSPHERE EXHIBITION: A COLLECTION OF EUROPEAN BRANDS
6/12/2019 5:01:40 PM
EVFTA: Vietnam, EU sign landmark free trade deal
7/1/2019 9:30:29 AM
Outlook 2019: Seminar discusses VN-India business opportunities
7/5/2019 10:42:39 AM
Actively remove difficulties for enterprises in Long Hau Industrial Park
7/25/2019 3:25:21 PM
Vingroup opens admissions to aviation school
8/18/2019 10:08:23 AM
BBGV: HCMC 19TH FUN RUN FOR CHARITY
9/13/2019 7:44:53 AM
MoF to give tax incentives for automobile manufacturers, electric car imports
11/18/2019 8:33:01 AM
Mekong Delta speedboat service to Con Dao extended to Can Tho
12/8/2019 7:58:09 AM
Vingroup merges with Masan to form VN’s largest retailer
12/8/2019 8:16:17 AM
Ho Chi Minh City downtown park renovation wins Future Project of the Year
1/23/2020 11:50:49 PM
China virus deaths rise as WHO says 'opportunity' to halt spread
2/5/2020 2:19:45 PM
Vietnam succeeds in isolating novel coronavirus
2/7/2020 1:52:36 PM
Vietnam successfully produces SARS-CoV-2 test kit
3/5/2020 10:42:47 AM
Vietnam to refuse visitors from UK, Schengen countries - state media
3/14/2020 3:58:54 PM
F1 Vietnam Grand Prix 2020 postponed
3/14/2020 4:09:05 PM
Vietnam suspends visas for all foreign arrivals to limit Covid-19
3/18/2020 2:04:38 PM
Emergency announcement on movement history of COVID-19 patients
3/26/2020 11:22:52 AM
PM orders strict nationwide social distancing rules, starting April 1
3/31/2020 2:04:44 PM
Gov’t prolongs social distancing in Hanoi, Saigon, Da Nang by one week
4/16/2020 12:05:18 PM
RADISSON BLU RESORT PHU QUOC: INCREDIBLE DREAM DEAL OFFERED
4/30/2020 9:57:48 AM
Demand for warehouse space will be strong after EVFTA
6/15/2020 11:25:34 AM
Saigon orders bars, discos to close down over COVID-19
7/31/2020 8:04:12 AM
BE STRONG DANANG
8/3/2020 8:03:21 AM
Government to slap fines for selling beer to people under 18
8/31/2020 4:35:32 PM
No more 14-day quarantine for foreign experts entering Vietnam
9/2/2020 8:56:50 PM
Radisson Blu Resort Phu Quoc in co-operation with Lavie to launch environment project
9/25/2020 2:53:16 PM
BRITCHAM: FUN RUN FOR CHARITY
10/30/2020 9:50:42 PM
Vietnam confirms first domestic Covid-19 case after three months
12/1/2020 8:44:42 AM
Flight attendant flouting quarantine regulations could face criminal charges
12/4/2020 8:17:40 AM
UK-VN free trade deal a new beginning for bilateral ties: UK trade secretary
12/14/2020 7:54:40 AM
Can Gio-Vung Tau ferry service welcomes first passengers in southern Vietnam
1/6/2021 7:46:03 AM
Long Thanh Airport: Construction of country’s largest airport starts in Đồng Nai Province
1/6/2021 7:51:42 AM
Vietnam to retest foreign experts who completed quarantine upon arrival
2/16/2021 10:19:17 PM
First Covid-19 vaccine doses arrive in Vietnam
2/24/2021 10:27:06 AM
US removes Vietnam out of list of currency manipulators
4/18/2021 11:35:34 AM
HCM City aims to finish major traffic projects this year
5/18/2021 9:39:57 AM
Newly arrived COVID-19 vaccine doses to be given to worst-hit localities
5/18/2021 9:44:19 AM
HCMC imposes two-week social distancing
5/30/2021 1:04:49 PM
HCMC allowed to purchase and import Covid-19 vaccines
6/16/2021 10:15:09 AM
HCM City sets up mobile teams for COVID-19 testing at home, tightens travel from nearby provinces
7/11/2021 10:18:12 AM
Vietnam’s homemade COVID-19 vaccine to be registered for approval in August
7/25/2021 10:58:54 AM
3 mln Moderna vaccine doses reach Vietnam
7/25/2021 11:08:32 AM
INCHAM: ECMO machine donation
7/31/2021 11:34:47 AM
HCM City issues movement curbs from Monday, calls for ‘tightening belts’
8/22/2021 10:57:59 AM
Vietnam’s Tourism Advisory Board proposes trial of countrywide travel pass
9/2/2021 12:41:34 PM
HCMC allows eateries to make deliveries after two months
9/9/2021 11:31:46 AM