The promoters of this initial issue of cryptocurrency created LinkedIn accounts and false Instagram.
The scam asked the ICO pay investors a high security device to store criptodivisas. All ICOs 2017, 46% failed or its promoters have absconded with the funds raised.
The initial emissions world of crypto currency remains the Wild West. Many are the efforts of the authorities to safeguard the interests of investors in this type of crowdfunding for companies based blockchain, however, false ICOs or Ponzi schemes tarnish the good performance of many projects come to fruition .
The most recent case of the ICO Giza, whose promoters, reports CNBC, which have wiped out $ 2 million of the proceeds from the public sale of tokens, which took place between January and February. 2,100 total collected ethereums -2.4 million dollars, only the equivalent of $ 16 remains. The rest is gone.
Investors who spoke to the ‘CNBC’ describes a similar experience with this ICO: thought the project was legitimate until the warning signs appeared features of these scams. A fight with the sole supplier of the company, the lack of response of its founding assumptions and failure to try to recover the lost funds.
The seemingly well-orchestrated scam is centered on a mysterious man named Marco Fike, chief operating officer of Giza. Among the eight investors, partners and former employees of Giza interviewed by the media, all they say they have never seen the face of Marco Fike. In addition, the promoters of this initial issue of currency, came to create a false account and use LinkedIn Instagram photos to provide background to this individual.
The Fike raised funds for such an alleged new company called Giza, who claimed to be developing a super-safe device that would allow people to store criptomonedas. But the company that was supposed to develop such a device, Third Pin LLC, reported that Giza had cut ties with her. Then, in mid-February, the ‘wallets’ electronic–monederos connected with the company, where investors had deposited funds, began to show outflows of large amounts of ethereums until March 2, register the last movement. Finally, the website of the company was deleted on March 9.
ICOS HALF OF FAILING
This modus operandi has similarities with another similar scam, the Bee token, but the reality is that about 50% of ICOs fail or disappear with the collection. They are the shocking figures of all fundraising initiatives through the issuance of digital tokens that were launched in 2017. Only 54% went ahead in mid-February, according to Tokendata.
ICOs were 902 in total, of which 142 were shipwrecked and 276 disappeared, many of them taking all the money raised. These figures reinforce the view of many experts that this phenomenon is used to swindle investors in good faith and that any regulation that applies is low.
In the US, the Commission Securities Market (SEC) has taken action against several currency issues digital, frenándolas dry and, more recently, has announced that it will force all exchange houses to register and adhere to the rules this supervisor applies to the stock exchanges.
WHAT DOES THE CNMV?
In Spain, in early February, the National Securities Market Commission (CNMV) and the Bank of Spain stepped up their alert on the risk involved for the retail investor invest in criptomonedas like bitcoin.
Lately are proliferating worldwide certain assets generally known as “virtual coins” or “criptomonedas”, including the bitcoin is the most prominent example. These “criptomonedas” are not backed by a central bank or other public authorities, although sometimes presented as an alternative to legal tender, but have very different characteristics, these two regulators said in a joint statement.
The CNMV and the Bank of Spain warned that, to date, no issue of “cryptocurrency” or any ICO has been registered, authorized or verified by any supervisory body in Spain. This implies that there are no “criptomonedas” or “tokens” issued in ICOs whose acquisition or holding in Spain to benefit from any of the safeguards or protections provided for in the regulations on banking products or investment. These phenomena are not peculiar to Spain but are taking place in many countries and have a clear international dimension.
The CNMV and the Bank of Spain consider it essential that decide to buy this type of digital assets or invest in them related to consider all the associated risks and assess if you have enough information to understand what is being offered products. Investment in such a high risk of loss or fraud.