The organizers of the Scam project Benebit have disappeared with $2.7 mln

One of the most appreciable ICO projects, which consistently stayed on the the top of initial coin offerings ratings, turned out to be a scam. The organizers of the Benebit ICO have attracted, according to various estimates, from 2.7 to $4 mln and then disappeared with investors funds, having switched off the web site and social networks accounts. The organization of the fraud was quite high: Benebit have spent about $ 500 thousands $ for a marketing company.

The ICO promotion was in full swing, the social networks were alive with high activity, Benebit was all over the news, when suddenly it was discovered that some members of the team photos turned out to be stolen from the web site of the British school for boys.

As soon as the fraud was discovered, the website and Benebit accounts in social networks were disabled. In Benebit Telegram Channel — the only one which is still working — the investors cry out for a response, joking sadly by posting the telephone numbers of the suicide hotlines. One of the investors reported that he had invested 14 BTC and ETH 300 in Benebit.

This scam one more time underlines the necessity of revising the principles of the crowdfunding market: in any case, projects should not receive “cash in advance” — on the contrary, the funds infusion should go to the project gradually, and the decision on transferring must be made by the investors. Such is the working scheme of Descrow project, the decentralized escrow platform for ICOs maintaining. Just one day left before its own ICO ending. You still have the time to get DES tokens here.