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Cryptocurrencies

ICO fraud makes the headlines again, now in Vietnam

Thursday 12 April 2018 | 10:44 AM CET

Two initial coin offerings (ICOs) - Ifan and Pincoin – have been investigated by the Vietnamese financial authorities as they were considered fraudulent.

As a result of the schemes, USD 660 million may have been lost, though these figures could not be verified at press time, according to CoinDesk. Investors in the two allegedly fraudulent ICOs descended on the offices of the company behind both of them.

Citing the news agency, Tuoi Tre News, CoinDesk announced that as many as 32,000 investors may have been affected. Furthermore, online materials for both initial coin offerings bear some of the hallmarks of Ponzi schemes, including Ifan, which boasts that it offers “risk-free activity”.

By contrast, Pincoin promises profits of “up to 40% monthly” through a range of bonus structures that favour early investors over later ones. It also uses imagery associated with the get-rich-quick subculture, including a Lamborghini.

Currently, according to Business Insider, all cryptocurrencies and transactions in cryptocurrencies are illegal in Vietnam.

More: Link
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