New Report Says $1 Billion Already Invested in Fraudulent ICOs
A new report from the Wall Street Journal said that investors had already put in around $1 billion into initial coin offerings that bore a number of red flags for fraud.
According to the WSJ, 271 out of 1,450 digital coin offerings raised red flags such as fake executive information or plagiarized documents, while 111 had re-written or fully plagiarized white papers. In one case, a Polish banker named Jenish Mirani even said that his photo was used to portray the co-founder of an online payment project called Denaro.
It is said that while coin sales or initial coin offerings have become a fast and easy way for investors to buy into a new digital token while letting developers get easy access to funding, it had also been abused by a number of unproven projects and scammers.