271 ICO scams uncovered by The Wall Street Journal [WSJ]
In a recent analysis by The Wall Street Journal supported by a press release on 16th May by the U.S Securities and Exchange Commission [SEC], a great deal of plagiarism and identity theft was revealed by several cryptocurrency exchanges. More often than not, cryptocurrency networks use flawed tactics by promising fake return policies, coping codes from top crypto networks or by using concealed team members.
More than 1,450 digital coin offerings were reviewed, out of which 271 coin exchanges are marked with red flags because they have successfully violated security laws in the cryptocurrency space. Some of them are privately raising funds even now and some have shut down with investors drowning in losses reaching up to $273 million, as mentioned in the lawsuits.
The SEC has already started taking actions against such frauds for people to be more aware of these scams that not only violate the integrity of new technologies but also undermine the value of the coins.
In a recent document published, the mention of “Jeremy Boker” who is supposedly the co-founder of ‘Denaro’, an online exchange portal, has claimed to have raised over $8.3 million with his cryptocurrency start-up. However, attempts to identify and track the company details were a complete disappointment as the profile identity of Mr. Boker does not exist anywhere.
121 projects did not disclose their employee names in the hope of generating funds that aren’t accounted for and the other half were not even real people.
When it comes to ‘white papers’, they are everything important and it is definitely not okay to copy these codes of information that presents the problem along with their solutions to it. WSJ was capable of identifying such 111 copied programming languages from other white papers.
The un-disclosure of team members and company details is a sure target for fraud. More than two dozen ICOs have been promising ample returns and profits, including companies like PlexCorps who take the advantage of ICOs not having to file any paperwork.