GBL

On October 26, 2013, GBL, a Chinese Bitcoin trading platform, abruptly vanished, taking approximately ¥25 million ($4.1 million USD) in user funds. Launched in May 2013, GBL falsely claimed to be based in Hong Kong, though its servers were in Beijing, and it lacked a financial services license. Despite red flags—such as a fake address, no clear contact information, and plagiarized website content—GBL attracted around 1,000 investors, lured by Bitcoin’s surging popularity in China. By September, the platform issued stock to users and capped withdrawals, likely to amass funds before disappearing.

The shutdown left investors locked out, with Hong Kong police notified but limited by the unregulated crypto landscape of 2013. Estimates of the loss, based on reports from The Standard and CoinDesk, align at $4.1 million, reflecting Bitcoin’s price of roughly $200-$300 at the time. The platform’s website went offline, leaving users unable to access accounts or withdraw holdings, and Hong Kong police were notified, though the unregulated crypto landscape of 2013 hindered progress.

The scam severely undermined trust in early cryptocurrency exchanges, contributing to a temporary dip in market confidence. It exposed the dangers of unverified platforms, spurring calls for transparency, robust security, and regulatory oversight. GBL’s collapse remains a cautionary tale, emphasizing the need for due diligence and safeguards to protect users in nascent digital markets.