Pure South Korean ICO bit pulls a scam for $ 2.8 million


A fake South Korean startup pulled out a $ 2.8 million scam, raising 13,500 ETHs from its ICO campaign before disappearing from the web. Pure Bit closed its Web site after the sale of Pure Coin tokens was completed on November 9th. The coin was to serve as an exchange chip for the exchange of Pure Bit.

The Pure Bit exchange was scheduled for launch at the end of this month. The exchange offered Pure Coin holders a fraction of the Pure Bit exchange revenue in addition to the discounted trading commissions. The Pure Bit ICO campaign was led by an anonymous group that promised to burn 90% of the token stock during the three years following the opening of the exchange.

Bitcoin Magazine reports that a block explorer for the Ethereum portfolio of ICO has tracked down a number of incoming transactions from investors as of November 4, 2018. However, starting November 9, the first investment of € 500 ICO was transferred, with the remaining 13,178 withdrawn 20 minutes later.

Pure Bit scammers have wiped out most of their online footprint. Some Reddit users were able to take screenshots of the company's website before they went offline and added English translations.

"One more reason to wait for the start of an ICO and the lowering of prices (as with most ICOs) before investing," one user said. "On the upside, if the scammers were in South Korea, they will have the South Korean government warm on their tails."

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The consensus among Reddit users who closely followed the scam is that all funds from the finished Pure Bit ICO campaign were sent to a single, unknown portfolio address. The picture above shows a Pure Bit administrator that removes all participants from the Pure Bit Kakao chat thread. The final message from the administrator reads simply "Thank you."

Although at this point it can not be completely confirmed if this is really a scam at the exit, all the evidence seems to point in that direction. As described by Bitcoin Magazine, this is a nice manual case for which the South Korean government has banned the ICO completely.

It has also been reported that Pure Bit has launched an affiliate campaign, which has rewarded users who have introduced new investors with extra tokens. The minimum investment for selling tokens was around $ 1,000 (5 ETH).

As previously reported by Unhashed, the new data suggest that ICO scams cost investors over $ 100 million as of August. However, given the limitations of these types of data collection surveys, the total number of stolen funds is likely to be significantly higher.

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