Le Minh Tam, the CEO of Ho Chi Minh City-based, Sky Mining – a crypto mining firm in Vietnam, allegedly stole $35 million of investors funds. Reports reveal that the CEO has been missing for about a week now. The alleged fraud case is among others that have rocked the crypto community in the country recently.
The company according to its website is specialised in purchasing computers to solve complex calculations, a procedure that is known as cryptocurrency mining. The company has gotten a lot of investors, whose investments were used to set up mining rigs. Investors paid between $100 to $5,000 for each of these rigs, which was said will be kept in the Sky Mining’s 26 storage facility in the country for mining.
Investors were promised a 300% profit on their investments after 12 months, and there was the promise of a commission to be paid to investors that referred others. As at March the company already had over 7000 investors. The company held many events to attract investors in Hanoi and HCMC, where the leaders of Sky Mining claimed that it was the “largest” cryptocurrency mining firm in Vietnam.
The CEO of the company that has been in hiding for two weeks posted on a Facebook group to investors, by apologising about everything. Starting that the market was unpredictable and mining rig value had dropped drastically, and a tendency of making a profit is very slim.
He further asked the investors to go to the company and recover the capital they have invested, and afterwards, will declare bankruptcy. But following his instructions, the investors who went to claim their monies met the company’s closure.
While the investors are raging on the fraud, the vice chairman of the company Le Minh Hieu, states that he has organised a temporary board of 16 people to support investors and calculate the remaining asset. He further says that the CEO has gone to the U.S., with him alone having access to all the funds as he managed it directly. A group of 20 investors has filed a petition for fraud against the company.
This nature of fraud is not new to the crypto community, and especially Vietnam has a similar situation which has taken place in April of this year in Ho Chi Minh City’s District, with Modern Tech, a crypto firm who had scammed investors of VND15 trillion ($650 million) in a cryptocurrency Ponzi scheme.
For more credibility to be in cryptocurrency world, government, institutions and investors must rise to fight the issues cryptocurrency fraud globally.