Investors were enticed to capitalize on nonexistent opportunities by investing in the Pure Bit ICO with rewards. Pure Bit has now mysteriously disappeared taking with them 13,000 worth of ETH.
The South Korean exchange has been accused of scamming investors after raising roughly 13,000 ETH or 2.7 million dollars in equivalent value in ICO funds. The South Korean government recently banned ICOs in South Korea, and in a bid to still raise funds, Pure Bit operated anonymously under the sheets. Due to the popularity of ICO investments in South Korea, saying that investors were not vigilant when investing in the money draining scam might not be far off from the truth.
Details of Pure Bit ICO Scam
The team behind the Pure Bit ICO scam have shut down operations, and its website. The 13,000 worth of ETH invested was also moved from its wallets and their social media accounts deleted. They also deleted their Kakao group chat but not before curtseying the investors by politely apologizing and thanking them for the successful scam. Their final post before deleting the group chat was ‘sorry’ and then ‘thanks.’
Recovery of investments by investors will definitely be hard, and a Reddit user, ‘qwerty77077’ stated that;
“They have gotten rid of every evidence. Website hosted by fake name / out of Korea host/ messenger/contacts were all fake too. Now their only hope is to keep on track with that ether and hope for the best.”
The investors were lured with a promise of possessing a dividend-paying Pure Coin which the platform would adopt as its native cryptocurrency to effectively run its ecosystem. The polite scammers further hit investors with a cock and bull soap opera that its users would be rewarded for using the token as a payment method for commodities and services. Similar to Binance (BNB), Pure Bit offered an affiliate program that would reward its users with Pure Bit tokens for referrals that led to new uses. The minimum amount of investment for the ICO was 5 ETH.
The Prevalence of ICO Scams Plaguing the Crypto World
The ICO was supposed to come to an end by 30th of November, 2018 but probably because of the slow speed of investments as recorded widely by ICOs since the massive crypto market fall, the cunning team decided they had scammed enough from their victims and stopped operations suddenly. Several ICO scams have hit the cryptocurrency world including a 6 million dollar scam by Canadian exchange, MapleChange in October this year. Up till this day, over 100 million dollars have been lost to ICO scams.
The previous top five ICO scams had earned the criminals over 20 million dollars in total. In December 2017, PlexCoin had raised a total of 15 million dollars after claims that returns on investment would hit at least 1,354% before disappearing into thin air.
Benebit had scammed investors of about 2.7 to 4 million dollars, Opair and Ebitz, hit victims with a 2.9 million dollar scam in the summer of 2016, REcoin and DRC scammed about $300,000 after claims that their cryptocurrency was backed up with diamonds and real estate, and finally, PonziCoin scammed investors of $250,000. Well, judging by the name, investors should have seen that the PonziCoin ICO scam was coming.