Vietnam, situated in Asia has been picking up in the cryptocurrency mining field however things took a turn when a cryptocurrency mining scheme based in Vietnam collapsed thanks to its CEO. The CEO Le Minh Tam has run away with all the funds from the country leaving his employees in a big mess having to answer questions to the investors.
The news came out when VnExpress reported Sky Mining building being closed, along with its name removed and mining rigs moved out.
Approximately $35 million has been confirmed to be stolen from the company according to the deputy chairman of Sky Mining Le Minh Hieu. The deputy chairman went on to speak about Tam’s whereabouts, which according to him is the United States.
Le Minh Hieu spoke about how the board was not involved in this act, “[The board] has reported this to the police and showed evidence that we are not guilty. We are victims, too,”
Suspicions were high when unrealistic amounts of 300% returns on profits were promised by the company, which is a telling sign for a fraudulent blockchain and cryptocurrency related company.
All the investor’s had to do was pay for the management of the machines which were mining cryptocurrencies through ASICs.
According to Vietnamese news media, The Epoch Times Tam apologized in a private Facebook group stating the unpredictability of the market, falling profits of mining and stating “My last resort is to stay hidden from the public to protect my life.”
However, this was updated later in a video saying he is undergoing therapy and saying “I will contact you as soon as possible to work with you through all the workshops and you will have the money.”
Vietnam’s State Securities Commission of Vietnam (SSC) had announced last week that firms are forbidden to engage in any cryptocurrency associated activities
Such measures have been taken after two ICO scams have already affected 32,000 Vietnamese residents leading to losses of over $660 million.