CEO of cryptocurrency mining firm absconded with $35 million investor funds

July 31
16:57 2018

The CEO of a cryptocurrency mining startup, Sky Mining, has reportedly disappeared with client investments worth $ 35 million.

According to a report in Newsweek, Le Minh Tam, head of the Vietnam-based company, has been missing since July 26.

Sky Mining, which offered to investors services of crypto miners for a fee ranging from $ 100 to $ 5,000, received funds from over 5,000 investors prior to Tam’s disappearance last week.

The firm promised returns worth 300 percent over a year, with clients keeping the machines for 15 to 18 months.

However, the scam came to the surface when a group of investors visited the firm’s facility last Friday only to find it empty with all the machines missing.

Investors have started filing lawsuits against the firm, although chances of recovery seem fairly bleak at this point.

According to reports, Tam claimed to have sold the crypto mining machines to cover financial losses and explained his disappearance citing threat to life.

In a series of messages on Sunday, Tam stated that he would return. However, deputy chairman of Sky Mining, Le Minh Hieu, claimed that the absconding CEO has relocated to the US with the stolen money.

He further stated that he planned to set up a temporary board to run the company in Tam’s absence, but death threats directed towards him and his family has prevented him from doing so.

A report in Vietnamese news outlet VnExpress revealed that the absconding CEO had absolute authority in the company, controlling all the funds and overseeing all mining operations.