Home / Today Tech / South Korean cryptocurrency startup pulls a $2.7M exit scam

South Korean cryptocurrency startup pulls a $2.7M exit scam

2018 will certainly go down as the year of the exit scam as yet another initial coin offering (ICO) has disappeared out of skinny air – together with tens of millions price of traders’ cryptocurrency.

Blockchain firm Pure Bit has seemingly walked off with $2.7 million price of traders’ cash after elevating 13,000 Ethereum in an ICO. Transaction history shows that hours after moving all raised funds out of its wallet, the company proceeded to take down its website. It now returns a blank page.

Victims report Pure Bit has already deleted its social media accounts; it has also kicked out all users from its dedicated KakaoTalk chat group.

An archived version of its web site says the corporate was elevating funds to create a new kind of a ‘mining coin’ (based mostly on Ethereum’s ERC20 normal) that pays dividends to holders. It additionally had plans to launch a cryptocurrency trade desk that will reward clients for utilizing its native PURE coin. But now it seems none of these guarantees have been genuine.

Pure Bit was additionally operating an affiliate marketing campaign that rewarded customers with additional tokens any time they introduced new traders; the minimal quantity to enter the token sale was roughly $1,000 (5 ETH). According to the now-defunct web site, the corporate first started elevating funds on November 5. It meant to maintain the sale open till November 30.

This is the newest in a string of exit scams that occurred within the blockchain area in 2018. Indeed, stories steered exit scammers have thieved more than $100 million price of cryptocurrency during the last two years alone. Subsequent investigations trace the precise sum of stolen cryptocurrency could possibly be even greater.

Of course, there may be all the time the possibility Pure Bit’s abrupt disappearance was just a silly marketing stunt (although that appears considerably unlikely at this level).

Published November 9, 2018 — 15:17 UTC

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