We are proud to announce our partnership with one of the most exciting movements in the cryptosphere, CryptoTribunal. CryptoTribunal is a blockchain-based initiative that’s seeking to redress the rampant fraudulent activities in the industry and bring restitution for victims.
The increasing prevalence of fraud in the industry has led to many discrediting it, distorting the pioneering works some of the brightest minds of this generation have put into decentralizing and disintermediating global finances. A lot of people who invested their hard-earned money into potential projects have wound up becoming victims with scammers leveraging the decentralized nature of the industry to vanish into the wind. CryptoTribunal wants to put an end to this with our help.
As a technical partner and support for the movement, we will be helping them to implement plans and features for initiating legal prosecution. We want to help CryptoTribunal to cleanse the whole market of fraudulent activity, uncovering and solving pre-existing scams, and preventing them from occurring in the future through Ubikiri. By using our platform, CryptoTribunal will be able to consolidate defrauded token holders in order to take collective actions and persecute these scammers.
Let us share some details about how it will be working.
What is the role of Ubikiri?
The platform itself is not a collector, neither does it guarantee refunds or represent any side of the transaction. Ubikiri provides only a platform for consolidating tokens holders.
To achieve this, we will be implementing two key features on our platform. The first will be the ability to work with ERC20 tokens, considering the pervasive nature of this token class for decentralized crowdfunding. The second feature is the ability to sign offers between holders and Ubikiri partners, enabling them to come into immutable agreements that can be publicly accessed by all concerned parties.
Ubikiri is set to become the platform that will help defrauded tokens holders unite in a movement to take collective actions. The platform gives these people the opportunity to consolidate and apparently lawyers will not represent the interests of defrauded holders for free. Ubikiri assumes the role of a consolidator, transferring the collected amount to lawyers, as well as distributing the refund. Also, only through our platform will holders be able to prove the purchase. In fact, the platform deanonymizes the holder through confirmed passport data, address and so on. Work on recovery will be divided into several stages:
- Analysis
- Gathering claims
- Study of critical issues
- Judicial recovery procedure
Who are CryptoTribunal targets?
In general, CryptoTribunal targets are the founders of fraudulent projects who have illegally collected quite a substantial amount of money using their real names. They raised money, flew from one conference to the other — by first-class or business — lived in expensive hotels, and continued to live a lavish lifestyle for years using raised funds. These people rarely conceal their identity and find it difficult to remain under the radar with their lifestyle. There is a large possibility that they still have some of the raised funds in their possession — in movable or immovable assets.
How will it work?
The platform will have two types of participants; victims and legal professions comprising of lawyers, detectives, analysts, and those who have the professional skills that our partners will use to search for and punish criminals. And punishment is not the end of it all. CryptoTribunal also aims to recover victims lost funds, after all, not all the funds that were stolen have been wasted. There is always hope to refund at least some amount and, of course, to punish those responsible.
CryptoTribunal via Ubikiri will rank fraudulent projects by the amount of funds stolen, and the activity of the community. This ranking will also be used by the professionals employed from the initial stages through until the refund.
To finance the various stages of the procedure, there will be “low-level” is a fundraising events. These inexpensive events will only occur if there are clear prospect of success in the case and for the next stage. This approach is intended to save money, ensuring that funds are not wasted on research and procedures that have no prospect of succeeding.
Before the crowdfunding the various stages, participants will be divided into three types. The first are those who have suffered and have tokens or the right to recover something (note, that the process can not be started without the application of the injured person). The second type are those who finance the project, while the third are the people who spread or source information in order to receive a bounty. Funds recovered will be distributed to participants with half going to the victims and the other half is distributed amongst those who financed this project. Note that the proportion can be changed if agreed upon by all parties.
How it will be organized?
To organize interaction within the movement, a special blockchain, called a Consilium, will be created. This Consilium will be a private blockchain with representatives of the movement given supervising rights. Such a representative is the association of lawyers. This association will offer those who have been defrauded the opportunity to become their representatives in a bid to recover funds. Through a trust agreement, they will become the attorney for those persons who have accepted this offer.
To make an offer, victims must prove they own the tokens of the specified project (Note that not all fraudulent projects released tokens, many left the market during the presale stage and even did not initiate tokens). Also, the victims must be identifiable by having a Ubikiri account and undergoing KYC.
Another group of individuals are those participants who fund the movement. They will have to transfer some amount to the address of a smart contract — an ordinary crowdfunding contract. This contract will be active for a limited time and when it reaches the minimum amount required, the collected funds will be transferred to the lawyers. If this does not happen, depositors will be refunded back. Refunding also required the introduction of a new type of smart contract.
