What is happening at Karatbars?
In the past weeks, there was some false information going around on the Internet in the context of a “smear campaign” against Karatbars. This is mainly about the ICOs KaratGold Coin (KBC) as well as KaratCoinBank Coin (KCB).
Interesting to note: Very few of these websites that spread misinformation have an imprint or an author who is showing his or her name, or even exists.
It is also conspicuous that many of the owners of these domains are anonymous. If you look up the domain “warningkarat.com” on “Whois” (www.whois.net), you will find that the company “Automattic Inc.” is the owner of that domain. However, the actual owner remains unknown. Automattic is just a service provider that allows you to register domains in its name.
At the moment, we don’t have any substantial insights into who is behind this campaign. What is clear to us is that the attacks with bought ratings and false accusations in articles were carried out by an agency in Russia. The latest attempts to paralyze Karatbars’ websites with a so-called DDoS attack happened in August 2019 and almost exclusively came out of Russia.
The case of Marvin Steinberg
Looking at the overall circumstances that are about to get laid out, the suspicion that mister Marvin Steinberg, a former business partner of Karatbars, could have something to do with it might arise. This is stated on the website https://marvinsteinberg.travel.blog.
We very explicitly do not say that this is the case here. We just don’t know and, because of that, we distance ourselves from the contents of this website. However, it might still be worth it to take a look at the dubious business activities of mister Steinberg.
Also notable, it is interesting that the actual service provider of Karatbars, Marvin Steinberg - the person / company who created the coin - doesn’t show up in the sources that are known to us, even though Steinberg showed himself on numerous pictures and videos that were taken on Karatbars’ events, e.g. at the grand opening of the KaratCoin Bank (in the background from minute 0:21) or in this video in the background at minute 0:38.
This could be a coincidence. But the question presents itself: Who is interested in creating websites that can’t be traced back to one person or group?
The business relationship between Marvin Steinberg and Karatbars
Marvin Steinberg and his company “MyICO Agency / Steinberg Marketing GmbH” were appointed with the creation of a coin and the execution of an ICO in December 2017.
According to his own statements, Marvin Steinberg presented himself as “Europe’s #1 leading ICO agency”. He is still doing this today with his new company CPI Technologies GmbH.
Marvin Steinberg’s agency created the KBC Coin based on Ethereum. Steinberg had access to the 12.000.000.000 coins. As agreed upon, he developed a website for KaratGold and controlled the revenue that the sale of the coins generated. The full amount of coins still has not been handed over, at least that is our viewpoint. Still, he denies that there are coins left. Damages in the millions occurred.
According to an affidativ signed by mister Markus Mincker, legal steps against the Steinberg Marketing GmbH (MyICO Agency) and mister Marvin Steinberg were initiated. Criminal charges for fraud and forgery against Marvin Steinberg and his company were filed. What actually happened in this case can not yet be definitely assessed.
Karatbars paid Marvin Steinberg roughly €2.8 million for the ICO, the websites, the organization of listings on crypto-exchanges and other related services.
This alone is evident from the numerous invoices of Marvin Steinberg between 30.04.2018 and 05.12.2018.
When customers bought the first KBC tokens, the chaos began: He was responsible for the transfer of the coins and held all the threads in his hands.
According to our information, there were about 3,000 cases of problems or irregularities in the transfer of coins. The damage is estimated to be around $12 million and affects more than 300,000,000 KBC.
Is this the professional work of a self-proclaimed “ICO specialist”?
According to Karatbars, some people transferred back the incorrectly booked coins. But many did not. Even at this early stage, immense damage had already been done to the company: organizational, financial and the reputation of Karatbars.
In one case, 180 million coins were sent — to two affiliates in South Africa — without Karatbars’ knowledge or approval. Days later Marvin Steinberg traveled to South Africa — supposedly for a “motivation training”. This was communicated to us by an affiliate partner. Is this a coincidence? We do not know, but we think it is remarkable at least.
Because of this chaos that was caused by him, of course, the company Karatbars put pressure on him to minimize the damage and to ask him to fulfill his more than high-paying service. In January 2019, Marvin Steinberg wanted to drop out as a service provider. Both parties decided to separate amicably in January 2019.
Unfortunately, we then had difficulties to contact Marvin Steinberg. He did not react to WhatsApp voice messages for weeks.
Audio files will be available soon.
Karatbars now had to take the distribution of the coins into its own hands, but without a handing over of the coins by Marvin Steinberg and without full access to the necessary databases, etc.
Legal steps against Marvin Steinberg
After several failed attempts to reach Marvin Steinberg, Karatbars decided to take legal action against Marvin Steinberg in January 2019. This resulted in correspondence with the law firm WINHELLER from Frankfurt am Main that was commissioned by Karatbars.
Only after the initiation of legal steps to release the coins and hand over the project, Marvin Steinberg responded and wanted to settle out of court. If this judicial step had not been carried out at that time, then all the coins and technical accesses would probably still be owned by Marvin Steinberg.
It was a tough time for Karatbars since the buyers of the coins were obviously angry and pressed to get their coins. And rightfully so. Nevertheless, he massively damaged the company.
Stuttgart’s district attorney has now resumed a preliminary investigation against Marvin Steinberg for fraud in June 2019.
A look at former client’s of Marvin Steinberg
After our research, we found out that an earlier ICO of Marvin Steinberg took a problematic course, as well. Today, the Eroiy Coin is no longer tradable on any relevant cryptocurrency exchange — and you won’t find anything else but price losses. Some investors could have suffered a total loss here. We do not know whether this is the case. And we can not conclusively say how much of all of this goes back to Mr. Steinberg. It certainly fits into the experiences of Karatbars.
Karatbars has contacted Eroiy. We were told on the phone that legal action against Marvin Steinberg is being initiated. We do not know whether this happened.
It is also alarming that Steinberg / his company is working for the porn industry. This does not fit with the image that one is supposedly working for big companies — see self-expression in various articles and videos by Marvin Steinberg and his companies.
Karatbars strikes back
Now, it seems like Marvin Steinberg’s plan in regard to Karatbars isn’t working out.
The opposite came true. Karatbars is fighting back.
It is interesting to note that just now, when Karatbars is defending itself with legal means, strangers are trying to harm the company through perfidious methods — such as the “spamming” of 1-star Google reviews on Karatbars and many other dubious methods. Almost all of the recent 1-star Google reviews have been created by brand new Google accounts, which typically have not rated any other company.
It can be assumed that these accounts serve exclusively for the purpose of damaging Karatbars through fake ratings. We don’t know whether all of this has to do with Marvin Steinberg. There is no substantial insight. The reader may make up his or her own mind; In any case, Karatbars is not in any kind of conflict with any other company or individual.
Karatbars is a company with substance that was founded in 2011. The company has over 700,000 partners in more than 120 countries and has an exemplary track record.
At the moment, Marvin Steinberg is also massively getting in contact with Karatbars’ affiliates, according to various affiliates.
Karatbars asks all those who can contribute to the clarification of the facts to get in touch with Karatbars. We ask the following questions:
- Who received too little or too many coins in the ICO phase of the KBC between February 2018 and December 2018? Please send us all the correspondence with supporting documents.
- Which Karatbars affiliates did Marvin Steinberg contact after January 2019 and commented negatively?
- To whom did Marvin Steinberg send links, reports or negative false reports from Karatbars?
Please send the correspondence or the documentation of the respective facts to the email address firstname.lastname@example.org
One of the world’s largest class action lawsuits against an alleged ICO fraud is currently being prepared. The truth must come out to protect companies that have great business ideas and investors who invest in good faith.