Vietnam crypto mining CEO flees with $35M in investors' money

Vietnam crypto mining CEO flees with $35M in investors’ money

At least 20 investors of a Vietnamese cryptocurrency mining company have fallen victim to yet another scam and are now seeking justice after the company’s CEO went missing. According to reports, the individuals had invested in a mining company called Sky Mining, which was based in Ho Chi Minh City.

Investigators said the crypto mining company lured investors by promising profits of up to 300 percent in addition to their initial investments after a 12-month period. All they had to do was invest at least $100 and up to $5,000, which will go towards the purchase of mining rigs. The company, in turn, will store the mining rigs in 26 storage spots all over the country. It is believed that the company had acquired 7,000 mining rigs in the last five months of operation.

The investors became suspicious after their efforts to reach Sky Mining’s CEO, Le Minh Tam, on Monday bore no fruits. The victims reportedly paid a visit to the company’s main office in Phu Nhuan District only to find a locked building with the company’s nameplate already removed. The investors also visited Sky Mining’s factory in Dong Nai province, where the company said most of the mining rigs were stored, but found that all the 600 mining machines used by the company had been taken away by a group of people claiming to be maintenance workers, according to local media.

Investors believe that Tam has absconded with an estimated $35 million, which they had invested in the company. The victims have filed a suit against the company and the CEO for the alleged fraud. They have also reported the incident to the local police authorities.

While addressing local reporters, the deputy chairperson of the company, Le Minh Hieu, claimed that he’s also a victim of the events, saying he wasn’t aware of Tam’s plans. He added that he has formed a temporary board comprising of 16 people to investigate the matter.

According to Hieu, Tam has already fled Vietnam to the United States. Hieu appealed to the investors to stop threatening his family, pointing out that the board has already cleared him from the incident.

In a Facebook post, Tam apologized to Sky Mining investors, saying he fled the country to protect his life. The embattled executive said that the current events were a result of a drop in mining rigs’ value that led to huge losses. He asked investors to go and recover their investment from the company. He further said that he would claim bankruptcy once everything was straightened out.

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