Korean cryptocurrency exchange disappears with more than 13,000 ETH for shareholders
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Answer Korean cryptocurrency exchange disappears with more than 13,000 ETH for shareholders
Although the fear of scams in the crypto industry is often greatly exaggerated, reports have emerged that a South Korean startup has defrauded and stole the money of their own investors, with thousands of Ethereum (ETH) stolen in the process.
The Korean newspaper BlockchainROK, a highly respected source for the local blockchain and cryptocurrency industry, has been acquired and published on Twitter with the news of the scam to its followers, and issued a short message on the matter.
Opposite BlockchainROK is Pure Bit, an initial coin offering (ICO) startup that aims to launch a crypto-asset trading platform, which reportedly received crowdfunding of 13,000 Ethereum (ETH) before it was quickly transferred to wallets. Character.Read:PayPal launches cryptocurrency payment service for millions of merchants
After the unfortunate event occurred on November 9, just a few days before the completion of the first phase of the project’s pre-sale, investors took to the media en masse to claim that the project channels in Kakao (a direct messaging social media platform) have been phased out. Moreover, the “Pure Bit” website was quickly removed and visitors were greeted with the message “This site cannot be reached”… nothing more, nothing less.
Interestingly, this news comes ahead of a clear strategy to launch its platform by the end of November, making this scam all the more confusing and disappointing for investors, and most importantly damaging to the industry as a whole.
But you may be wondering – What tempted investors to throw millions into this project?
Well, as spotted by The Next Web’s Hard Fork tab, an archived copy of the Pure Bit page revealed that the company was planning to roll out a “fee mining” (PURE) that relies on exchanging it for Ethereum, which It allows its owners to get the profits of the platform. through the dividend system.
More specifically, the page archive revealed that PURE holders will get more cryptocurrency over time, while also allowing users to save 30% on trading fees. And last but not least, the company added that it will burn 90% of all computed tokens during a three-year “mining” period, a claim likely to try to lure gullible investors.Read:Swiss Financial Market Regulatory Authority: Blockchain helps money laundering and supports terrorism
As seen by BlockchainROK after the withdrawal and disappearance scam, the Pure Bit founder left a final message on his Kakao account, which roughly translates to “I am sorry”.
13,000 Ethereum units are still stolen, which could prompt investors who are likely to be reeling in a financial shock, to speak with local authorities on the matter.
However, some fear that the Korean authorities will not be able to track down ICO scammers as the project’s disappearance comes in spectacular fashion amid rumors that regulators in the Asian country may plan to issue a negative stance against ICOs in the next few weeks.
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