It seems like this type of thing is happening far too frequently, but alas, another occurrence of an exchange disappearing along with users’ money has taken place.
This time around the exchange is China’s GBL (founded May 2013), located online at btc-glb.com was said to have been based in Hong Kong, but detective work done by those in the bitcoin community determined the website was hosted in Beijing, raising red flags.
The company also never received a financial services license, making them little more trustworthy than a stranger on the corner asking you for a loan. Despite the signs of danger, users in China invested in the service.
In total, about 21 million Chinese Yuan has disappeared, which translated to roughly $4.1 million USD. Certainly a hefty chunk of change.
Just last week, Inputs.io mysteriously went offline after the owner stated they’ve been hacked, losing 4100 bitcoins worth over one million USD.
As bitcoin grows, these types of scams are to be expected. It is up to the end user to decide if who they give their money to is worth trusting.