These 5 ICO Exit Scams Cost Investors $100 Million
ICO exit scams over the last two years have left people $96.8 million out of pocket, according to data compiled by blockchain intelligence firm Diar.
However, this is only a drop in the ocean with regards to the influx of investment the cryptocurrency space is receiving. For context, blockchain start-ups have raised over $6.8 billion from ICOs in 2018 alone. Nonetheless, $100 million is an eye-watering amount. Let’s look at the top 5 ICO exit scams.
1. $60,000,000 – ACChain, Puyin, and BioLifeChain
The Chinese company Shenzhen Puyin Blockchain is responsible for $60 million of all thefts. The company raised funds for three ventures – ACChain, Puyin, and BioLifeChain – none of which materialized. Shenzhen police have since arrested six suspects involved in the fraud.
2. $12,000,000 – Cryptokami
Cryptokami promised to be, “The New 3rd Generation Blockchain Infrastructure for Global Financial Services.” It would do so by giving “a biological community foundation to outsider budgetary applications and end-clients.” Rather ironically, it argued that it would increase the power of the contributor community over ICOs, “thus reducing the risk of scams or insufficient effort by the development team.” Cryptokami’s site is now defunct.
3. $8,000,000 – NVO
Only last week, NVO exit scammed. NVO claimed to be building a “Cross-platform Modular Decentralized Exchange.” Instead, it took off with 3000 BTC ($8 million). NVO hasn’t updated its platform since March.
4. $4,500,000 – LoopX
LoopX was an investment platform. It promised to earn backers’ money with its proprietary trading algorithm. The company has since pulled its website and deleted its social media outlets, including Facebook and Telegram.