'Investment wizard' facing cryptocurrency complaintsTop News | Daphne Li 5 Nov 2018
Internet celebrity and stock market commentator Raymond Yuen has been accused of misleading web users into investing in cryptocurrency cloud-mining services.
Cryptocurrency mining is a process in which new cryptocurrency, usually called coins, are introduced into cryptocurrencies that are already in circulation. By investing in mining services, investors are supposed to share in profits derived from new coins.
The Democratic Party said it has received at least 12 complaints against Yuen, with losses estimated at between HK$10,000 and HK$600,000.
More than 12 people, aged 25 to 60, have joined the investment scheme since May this year. They are known to include professionals, fresh university graduates and retirees.
The total amount of investment was estimated at about HK$6.9 million. It is unclear if some investors have taken out loans for the investment.
Nicknamed "The Young Wizard of Investment," Yuen shot to prominence with his stock market savvy in the early 2000s.
He also hosted two radio shows about financial investments on Commercial Radio and Digital Broadcasting Corporation and published a book on stock investments.
With Yuen's status, investors were lured into signing cryptocurrency contracts that he recommended and which carried a 10-month payback offer.
Yuen was also alleged to have suggested investing in cryptocurrency cloud-mining services through Secret Technology Limited.
Most of the complainants ended up receiving only a 1 percent return from their investments.
One of the complainants, surnamed Chan, borrowed HK$200,000 which was invested into the mining services. She said her investment merely yielded HK$7 a day, far less than what she expected.
Complainants said terms of the investment contract were not explained clearly to them and they did not go through carefully over those terms.
Sham Shui Po district councillor Ramon Yuen Hoi-man slammed Raymond Yuen for exaggerating investment returns.
Complainants accused Raymond Yuen of not fully disclosing the investment risks and of making false claims that the company is affiliated with the cryptocurrency founder which can change the algorithm to outperform its competitors.
Investors also complained that they were asked to sign away their right to class action lawsuit.