Cryptocurrency warnings renewed after Macau locals stripped of HK20 million

first_img RelatedPosts The Monetary Authority of Macao (AMCM) has issued a new warning against the use of virtual currencies amid revelations that around 70 Macau locals have been left around HK$20 million out of pocket by a Hong Kong-based cryptocurrency mining company.According to a report by Macau News Agency, Rita Botelho dos Santos is set to file complaints against two Hong Kong companies – Genesis Hong Kong Limited and Forger Tech – having already filed a complaint against Dennis Lau Tin Chun and Hong Kit Lau, the majority shareholders in Genesis. The companies are alleged to have defaulted on promised payments totaling HK$20 million after signing agreements with “not less than” 70 Macau residents that saw them invest in cryptocurrency mining equipment.According to a Sworn Statement posted on Facebook in July by Santos’ son, Frederico Alexandre dos Santos Rosario, only around HK$6.4 million had been returned by that time. The statement adds that there have been seven “rounds” of the scheme conducted but that the Macau investors had only been returned the capital of their contributions for the first three rounds and none of the promised profits.Rosario is also the founder of Macau-based eSports organization, Grow uP eSports.Genises and Forger held a seminar at the headquarters of the Macau Civil Servants Association, co-hosted by Grow uP eSports, in January after which the 70 Macau investors signed a total of 142 participation agreements with the Hong Kong companies that included the transfer of investment funds to bank accounts held by Lau.The matter is ongoing.In a Monday statement, the AMCM reiterate that “virtual currencies are virtual commodities which are neither legal tenders nor financial instruments.”It added that the AMCM “has explicitly required all banks and payment services institutions in Macau not to participate in or provide, directly or indirectly, any financial services that involve the use of virtual currencies or virtual commodities as the means of payment. AMCM has been restating that provision of regulated activities such as foreign exchanges, cross-border fund transfers, or trading platforms for financial activities, without proper authorization constitutes a violation of the Financial System Act.”Rosario declined to speak publicly about the situation when contacted by Inside Asian Gaming last week but said that he was among the 70 victims left out of pocket. He also said at the time that he would leave it to his family to decide what course of action to take. Load More Casinos can innovate – and win new fans The Only Way is Up Caesars links with Japanese arcade game giant Taito for first US e-Arcade sports competitionlast_img read more