200 Million Hongmen Coin Issued by Macau’s Triad Boss Sold Out In 1 Minute, Sparking Fresh Scam Concerns
News of the ex-14K triad gang leader “Broken Tooth” Wan Kuok-koi’s involvement in a new 1 billion-U.S. dollar cryptocurrency project recently went viral in China, sparking fresh scam concerns.
Wan , an 62-year-old, was released from a Macau prison in 2012 after serving 14 years for an array of gangland crimes. Now, he chairs World Hongmen History and Culture Association which is named for its affiliation with Hongmen (also written as Hung Mun), a Chinese fraternal but secretive organization.
Wan was reported to launched a new cryptocurrency, called “Hongmen Coin” in the capital city of Cambodia, a safe haven for crypto-crooks, on May 20 with the blessing of high-ranking Cambodian government officials. And the first batch of 200 million “Hongmen Coin” was sold out in less than a minute at the event.
But we can find no website for this new project. Its white paper in Chinese said that the coin which is built atop AllChain is a payment medium for many application scenarios, including digital assets wallets, cryptocurrency exchanges, gaming, online shopping.Given that various entities under the control of Hongmen are accepting Hongmen Coins as a form of payment, this virtual currency has competitive advantages in liquidity. And the project has received strong support from the Cambodian government.
The total supply of Hongmen Coin is 1 billion ,and no additional coins will be released . Its initial price is fixed at $1 per coin and the first batch of 200 million coins will start trading on June 6.
Wan indicated in an interview with Eastweek that Hongmen coins can be used in Hongmen ’s other businesses, such as operating e-commerce, hotel and casino, as well as products such as watches, wine and tea. He also added that he wanted to use the fund which was raised through selling Hongmen coins to build a Chinese cultural town in Cambodia to allow ethnic Chinese to learn Chinese culture.
However, the official organization Hongmen Association,immediately denied their connection with the new cryptocurrency and Wan’s action in a statement, declaring that “Broken Tooth is to accumulate wealth in the name of Hongmen” and the issuing of Hongmen Coin was not authorized by them.
At press time, Broken Tooth has not commented on this and it remains unclear whether coin buyers will be compensated .
This is not the first time for the notorious gang leader seeking to use cryptocurrency scheme to accumulate wealth. Wan was a key player in a last September’s ICO plan. Macau-based gaming company Dragon Group which is backed by Wan, was looking to raise half a million dollars through ICO in tie with a Thia-based company, according to a report from CNBC.
And in April, financial authorities in Hongkong and Macau have issued a public warning over potential “fraud and criminal activities” in relation to Macau Dragon Group, which employed Cambridge Analytica, th