Exit scammers run off with $660 million in ICO earnings – TechCrunch


A Vietnamese cryptocurrency firm Trendy Tech launched an ICO for its Pincoin token, elevating $660 million from roughly 32,000 folks. The corporate first ran the Pincoin ICO, promising fixed returns to traders, after which launched one other token, iFan (a social community token for celebrities). Picoin traders first acquired money from their funding after which the crew started paying out rewards to Pincoin traders in iFan tokens.

Then the crew disappeared.

This so-called exit rip-off could possibly be that largest in current reminiscence and can also be indicative of what’s to come back within the ICO area. The crew of seven Vietnamese nationals appear to have left the nation whereas scammed traders massed exterior the corporate’s previous headquarters.

From Tuoi Tre news:

Actually, the true mastermind behind these tasks is a crew of seven Vietnamese nationals, who’ve held totally different conferences in Hanoi, Ho Chi Minh Metropolis and even distant areas to lure traders.

Traders have been informed that they might get pleasure from a revenue fee of 48 % a month from their preliminary funding, and recoup all investments after 4 months. Individuals would even be rewarded with an eight % fee for each new member they’ve launched to the community.

Pincoin was notably distinctive in that it provided bonuses for bringing different folks into this system, a tactic that may sound acquainted. The scammers paid out in money till January once they started sending iFan tokens. Then, final month, the crew vacated their fancy places of work leaving solely an oddly well-made – if incomplete – web site in its wake. Taking a more in-depth have a look at the site we discover a mannequin of obfuscation. The mission – “The PIN Mission is about constructing an internet collaborative consumption platform for international group, base on ideas of Sharing Financial system, Blockchain Expertise, and Crypto Foreign money” – appears on par with different pie-in-the-sky options however there isn’t any point out of any founders or advisors and even their fancy, multi-lingual white paper, has no clear founder data. In brief, the crew paid an ideal deal for a really good web site and satisfied hundreds of individuals it was reputable.

In keeping with Viet Bao, a crew consisting of Bui Thi My Ngoc, Ho Phu Ty, Ho Xuan Van, Luong Huynh Quoc Huy, Luu Trong Tuan, Nguyen Duc Trong, Nguyen Trung Hieu, and Vu Huu Loi led Pincoin and iFan from zero to multi-millions in a couple of months whereas claiming they have been representing merchandise from Singapore and India. “To formalize the mode of operation, ifan and Pincoin licensed their firm as authorized consultant in Vietnam with tax code 0314707223. Trendy Tech then held the occasion in Ho Chi Minh Metropolis Minh and Hanoi to lift capital from traders,” Viet Bao reporter.

One attention-grabbing little bit of chicanery is that this display from the iFan page. Close to the center of the web page we discover data that the token is predicated on the Ethereum platform. The web page exhibits the worth and ranking of the cryptocurrency, suggesting that the Ethereum is immediately associated to the iFan worth.

And this popped up after I visited the mission’s white paper:

Once more we discover that the present, unregulated, ICO market is probably the most attention-grabbing system for parting fools from their cash in current historical past.



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