Chief Executive Officer of a cryptocurrency mining firm has unpleasantly surprised his team after running with $ 35 million, Newsweek reported.
Sky Mining deals with the lending of mining equipment to crypto investors for a sum of between $ 100 and $ 5,000. Before the head of the startup disappeared, the team managed to get orders from nearly 5,000 individuals. For a loan of between 15 and 18 months, the miners promised the company a 300 % return over a year.
Tam sold the mining devices and stole the funds
Even more, when more investors decided to retrieve their rented equipment last Friday, they found that the company’s mining center and the office was empty, respectively, the mining devices were gone without notifying the clients. After a few days, Tam declared his disappearance was a measure of protection, while the sale of the equipment was argued as a measure to cover the company’s losses. However, he did not return to the office, pretending on Sunday that he is going to come back soon.
We cannot confirm whether the startup CEO says the truth or not as the company’s chairman Le Minh Hieu claimed that Tam actually stole the funds and moved to the USA.
This incident is going to aggravate the company’s situation as several investors have already submitted lawsuits against the startup. Still, it’s ambiguous if the miners will receive their money back. As stated by VnExpress, Tam had the control over all operations, including the company’s funds.