Lessons from 300 million RMB: Seeing the fraud side of the project side

Everyone is acting in front of the other party,

But no one has deceived anyone.

– Zweig "The Journey of Yesterday"

According to the latest data, in the first quarter of 2019, startups raised only $118 million through ICO, compared with $6.9 billion in the same period last year.

The influx of funds is obviously not compatible with this technology that is still in its infancy, which directly leads to the counter-phasing of blockchain projects.

TokenData tracks 2,500 ICO projects since 2017, with less than 50% of successful financing projects.

Of the successfully issued ICOs, only 15% of project tokens are trading at a higher price than the issue price.

This means that more than 80% of the projects have been broken, including the world's first gaming platform hero chain that supports digital currency.

The hero chain broke after it went online in January last year, and fell directly from the issue price of 0.6 yuan to 0.05 yuan. Then in March, it was investigated by the public security organs for suspected fraud.

On April 22 this year, the Zhuhui Branch of the Hengyang Municipal Public Security Bureau issued an article entitled “The Zhuhui Police Cracked a Case of Extraordinary Internet Fraud” in its official public number.

The article revealed that in late December last year, a number of victims went to the Zhuhui branch to report that they were defrauded by the blockchain virtual digital currency project hero chain (HEC), and the amount of fraud was ranging from several hundred thousand yuan to several million yuan.

After investigations by the police, the amount involved in the case was as high as 300 million yuan, and the number of people involved was as many as 21 people.

At this point, the fraud case of the blockchain project is a paragraph.

1

According to the white paper of the Hero Chain Project, the project claims to be “the first national project in Cambodia in 2018”, and is committed to building the world's first gaming platform supporting digital cryptocurrency, which can effectively reconstruct gambling predictions.

Although the hero chain claims to be published on the public chain, its public chain code has never been announced.

It is worth noting that in the white paper team introduction, the whole team has only two people: James Yu, the R&D director, and Jack Xu, the system architect. They are all publicized in English and Chinese (pinyin), and there is no one. photo.

In addition, there is also a controller and CEO of the company Ike Pai, Joe Ko.

Among them, Ike Pai is mainly responsible for the establishment of the Cambodian International Digital Economy Zone and is also the chief consultant of Cambodia. Joe Ko is a partner of the Pan-Entertainment Chain.

In fact, the Cambodian International Digital Economy Zone is only a label posted by the Cambodian Communist Party Group in the “Golden Silver Bay” project, and the so-called chief consultant is only an advisor to the digital economic zone.

From this point of view, the project did not want to expose too much personal information from the beginning to prevent it from being traced by the police while running.

In addition to the project team, the hero chain also claimed in the early stage of the promotion that AChain, the founder of Guorenbao Cui Meng, the founder and chairman of HAC China's top sports car club Fu Yuyang, and the AG Asia Travel Group Macau director Zhou Tianyuan and others will participate in the investment.

More exaggerated is the news that investors can use the HEC token to directly purchase the super-run Koenigsegg.

However, this series of so-called investors per uttered a denial of participation in investment.

2

In addition to the previous momentum, the hero chain has also spent a lot of effort on the media.

Before the hero chain was officially released, the cannon of the coin circle published an article on the interview of the hero chain project in its public "Cannon Rating", and strongly advocated the application and future prospects of the hero chain.

As a currency bank with the right to speak, such a straightforward recommendation project will inevitably lead some investors to directly hook.

In addition, the blockchain from the media bit Wu also participated in the project's proxy investment, the role of the project is the role of the project side and the investor intermediary.

Substitute investment can often get 40% of the project side financing.

According to people familiar with the matter, Bit Wu once recommended the hero chain in his community many times, not only bragging about the hero chain, but even claiming that it will be on the line of heavyweight cryptocurrency exchanges such as fire coins, OK, and currency security.

In fact, HEC only launched a small exchange called Coinegg.

At present, Bit Wu has also been arrested by the Zhuhui police.

Due to the false propaganda of the project party in the early stage, and the HEC token is broken, investors have completely lost confidence in the project and asked the project party to withdraw the money to recover the loss.

However, the project party does not accept the investor's solution for the coin withdrawal.

Subsequently, the hero chain project party proposed to give investors a compensation package of hero chain candy in a 1:1 ratio, and promised to increase the currency price by a hundred times after the system was officially launched in October.

This program obviously did not solve the problem in essence. The direct influx of HEC candy into the market also led to the further decline in the price of the currency.

The attitude of the project side also caused the investors who suffered the loss to be chilling, and the contradictions between the two sides could not be reconciled.

3

In addition to the hero chain, a so-called smart moving brick wallet named Sum Token was arrested last month by two heads of the Chinese region and the project was forced to stop operating.

But in fact, this is just another means of market makers.

Some investors said that before the announcement, the SumToken wallet had problems such as page loss and software failure to open, but the project side said that this was just normal maintenance.

In the dark, the project team directly transfers the currency held by the user to their wallet address.

According to incomplete statistics, the amount transferred by Sum Token is at least 400 million yuan.

In addition, a series of projects including film and television chain, space chain, and art chain all succeeded in running after a wave of money.

Some of the defenders have successfully filed the case, but the remaining investors have no right to defend their rights.

For investors who are experiencing digital currency fraud, the road to rights protection can be described as very difficult.

Since the cryptocurrency is still in the gray area of ​​legal supervision, the definition of cryptocurrency is also very vague.

Although the People's Bank and other five ministries and commissions issued the "Notice on the Prevention of Bitcoin Risk" issued in 2013, although the commodity attributes of Bitcoin were confirmed, the specific judgment was decided by the local court.

Most courts define Bitcoin as a property for case acceptance, but there are cases where Bitcoin is not legally protected and refused to be heard.

In addition, some project teams are set up overseas. After running, investors will face difficulties in collecting evidence and making it difficult to detect. It is difficult for the police to further advance the case.

For investors, under the temptation of high profits, the project side is not interested in understanding the situation.

However, there has never been a free lunch in the world.

(Source: District 45)