South Korean ICO steals $ 2.7 million in Ethereum (ETH)
Although the fear of scams in the nascent cryptic industry is often exaggerated, Friday it was reported that an apparent crypto-centric startup based in South Korea has pulled a devastating scam on its private investors, stealing thousands of Ethereum (ETH) in the process.
News on Cryptocurrency and Korean Blockchain (BlockchainROK), a well-respected source inside and outside the nation's local cryptosystem, has led Twitter to broadcast the news to their followers, posting a message on & # 39; argument.
🇰🇷 – The new Korean purse Pure Bit has just pulled out a scam at the exit, claiming 13,000 ETHs from its investors as we speak. The Kakao channels are emptying and the site has been pulled.
This is why we can not have beautiful things. Karma comes back hard when you piss off these people. pic.twitter.com/GDkjiz1gAq
– News on the cryptocurrency and Korean blockchain (@BlockchainROK) November 9, 2018
For BlockchainROK, Pure Bit, a startup funded by ICO & # 39; targeted & # 39; to launch an exchange of cryptographic resources, would have received crowdfunding transactions that amounted to 13,000 Ether (ETH) before quickly routing the personal portfolios by $ 2.7 million in crypto.
After the unfortunate event occurred on November 9, a few days before the conclusion of the first pre-sale of the project, investors brought social media en masse to support that the channels of the Kakao project (messaging platform) were gradually deleted by its members. In addition, the Pure Bit website was quickly removed, with potential visitors who now receive only a message "this site is inaccessible" … no more or less.
Interestingly, this news anticipates the apparent startup strategy of launching its platform by the end of November, making this scam more confusing and disappointing for its investors and, more importantly, for the industry as a whole.
But perhaps you're wondering: what attracted investors to throwing millions at the start?
Well, as noted by The Next Web's Hard Fork, an archived version of the Pure Bit webpage revealed that the company was planning to launch an Ethereum-based "mining coin" (PURE), which would allow its holders to be entitled to the profits of the exchange through a system of dividends.
More specifically, the page's archive revealed that PURE owners would accumulate more tokens over time, while allowing users to save 30% on trading fees. And last but not least, the shadow organization added that it would burn 90% of all PURE tokens in a three-year "mining" period, with this request probably made in an attempt to entice investors naive.
As noted by BlockchainROK, following the scam of the output, the founder of Pure Bit left a last message on his account Kakao, which translates roughly into "I'm sorry". While he / she may be displeasing, the stolen 13,000 Ethereums remain large, which could drive investors, who are probably recovering from the financial shock, to dialogue with local authorities about it.
However, some fear that the Korean authorities will not be able to track down the ICO scammers, since the surprising disappearance of Pure Bit comes from rumors that the regulators of the Asian nation may be planning a negative position against the Ico in the next few weeks.
Title Image Courtesy of Ciaran O & Brien on Unsplash