ICO Scam Steals $300k From Investors
Never invest in ICOs that sound “too good to be true”. There are a larger amount of ICO scams out there and investors need to be careful. The SEC is starting to crack down on ICO’s that are trying to take advantage of the system. One of the most recent investigations occurred with the founder of two scams ICOs, Maksim Zaslavskiy. Maksim did a great job of making this ICO scam sound like easy money makers for the interested investors.
REcoin (The Real Estate Scam)
Maksim said that REcoin was, “the first cryptocurrency backed by real estate investing”. He also claimed that the company had, “team of lawyers, professionals, brokers, and accountants”. Despite everything that Maksim said, he had nothing. He was not making any deals and he did not have any lawyers or professionals involved.
The entire scheme was to go after an unsuspecting market and steal money from interested investors. He even lied about the amount of money that was raised (to make it seem like more people were backing his ICO). He claimed that they raised between $2-4 million when in reality he raised about $300k.
DRC (The Diamond Reserve Club)
One coin was not enough for Maksim. He decided that he wanted to get into the diamond business. In this scheme, he told interested investors that he had great relationships with diamond wholesalers. He claimed that these wholesalers would sell him diamonds at a discount. Again, he was trying to make it sound like a “no-brainer” investment. The SEC believes that these “relationships” were all lies and that Maksim has never made any type of transactions with diamond wholesalers
What Does This Mean For Investors?
We believe that this is the first time the SEC has taken action against an ICO. Is this a good thing? Yes! Maksim was stealing people’s hard earned money and he should be punished for it. We need governments to help stop these scams so that the rest of cryptocurrency can continue to grow. As investors, we need to be careful with our money and never invest it into something that could potentially be a scam.
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