Investors are getting adventurous, and they are looking for new avenues to get the biggest bang for their buck. Cryptocurrency is one such avenue. But what if a crypto company that you entrust with your savings suddenly disappears off the face of the earth without a trace? One such incident has surfaced in Vietnam where the CEO of a cryptocurrency mining firm allegedly fled with investment funds worth $35 million and 600 computers.
The suspected fraud came to light last Monday when none of the investors and board members could establish contact with Sky Mining firm's CEO Le Minh Tam. A group of 20 investors has since filed a joint complaint against the company at the Phú Nhuận District police station of the Ho Chi Minh City.
According to a report, Sky Mining's head office in Phu Nhuan District is no longer operational and 600 computers which were used for crypto mining have been removed from its factory on the pretext of "maintenance work." The mining rigs located in the company's factory in nearby Bien Hoa Town had been removed by a group of men who said they were maintenance workers.
The crypto mining company's deputy chairman, Le Minh Hieu, appears to be clueless about CEO Tam's whereabouts as well as his intentions. He believes that Tam has fled to the US with the company's funds. Hieu and his family are now facing threats from the investors.
"(The board) has reported this to the police and showed evidence that we are not guilty. We are victims too," said Hieu, adding that CEO Tam was directly managing "rigs and storage" of the cryptocurrency mining company.
On Wednesday, Tam apologised in his post on Sky Mining investors' group on Facebook. The missing CEO blamed the market's unpredictability that apparently led to a drastic drop in mining rig value, incurring heavy losses. He urged his investors to visit Sky Mining's office to recover their money, but it was found to be in an abandoned state.
"My last resort is to stay hidden from public to protect my life," he said in his apology, adding that he would eventually declare bankruptcy.