Macau Residents Hit With $2.5M Crypto Scam

Some 70 Macau residents claimed to have been allegedly victimized by a cryptocurrency scammer with over $2.5 million.

Over 70 Macau residents allege that they have fallen victim to a cryptocurrency mining scam involving $2.55 million (HK$20 million), reported the Macau News Agency (MNA).

According to the report, the victims, all residents of Macau, held a press conference to claim that a Hong Kong-based e-sports and digital currency mining company vanished after convincing them to invest in the firm Forger Esports. The victims accused Forger Esports of engaging in illegal practices.

A seminar sponsored by Forger Esports in January told participants that it had created a digital currency mining center in Hong Kong called Forger CCMS that is supporting its operations with between 40 and 60 mining services in the pipeline for development. The mining center was claimed to have the capacity to earn $25,000 (HK$200,000) worth of mined cryptocurrency each month.

The company also convinced the participants to invest in its expansion projects with the promise of a fixed return.

Forger founder Dennis Lau reportedly told those attending the seminar about crypto mining:

“Anyone can do it if you have money and the technology start mining, but there are not a lot of companies doing it. Normally people start doing it themselves to gather interest from mined cryptocurrencies. They’ll place a mine or a team of miners in their house balcony, but they won’t do it with systematic preparation.”

But the victims said Lau disappeared after failing to pay the promised fixed returns from July 1 to 7. They added that the company owner did not respond to any attempt to contact him via WhatsApp.

The group of Macauans, headed by Alexandre Dos Santos Rosario, president of Grow uP eSports, said that one investor identified as a certain Mr. Ho invested a large amount of money into Forger Esports.

As of this writing, MNA said 14 of the victims have called for police assistance while ten have filed a report at a police station in Hong Kong.

In all, the reports said the company signed 142 contracts. The victims were demanding a return of their principal investments, including the promised returns as written on the contract that would exceed $6.38 million (HK$50 million).

The rise in cryptocurrency’s popularity has made it a fertile ground for fraudulent activities in China.

In April Macau authorities in Macau issued a statement of concern after it emerged that a former notorious gang leader is associated with a cryptocurrency project.