Home / Cryptocurrency / Fraudulent South Korean Exchange Pure Bit Nabs $2.8M in ICO Exit Scam

Fraudulent South Korean Exchange Pure Bit Nabs $2.8M in ICO Exit Scam

A South Korean ICO has defrauded its non-public sale buyers out of more or less 13,500 ETH ($2.eight million) sooner than disappearing from the web solely.

Natural Bit, which has already pulled the plug on its website online, has it appears performed a quite regimen go out rip-off for its Natural Coin token sale. The cryptocurrency was once pitched as an trade token for Natural Bit, an trade that was once meant to release via the top of the month. The Coin  promised to offer buyers stocks of the trade’s buying and selling earnings in addition to discounted charges for buying and selling, and its nameless staff claimed that it might burn 90% of token provide over a 3 12 months length.

A block explorer for the ICO’s Ethereum pockets shows a number of in-bound transactions from buyers starting on November four, 2018. On November nine, 2018, on the other hand, an preliminary 500 ether was once transferred out, with the remainder 13,178 withdrawn 20 mins later.

Now not the entire proof of this corporate’s very life was once destroyed right away, on the other hand. A thread on Reddit captured one of the most final moments of the trade and took a number of screenshots with translations from the unique Korean.

In line with Reddit consumer u/Tbid, who plainly watched the saga spread, Natural Bit was once a crypto trade that introduced an ICO release of an trade token. Virtually right away after the ICO ended, on the other hand, the entire finances have been spirited away to any other unmarried pockets deal with.

As depicted within the hooked up screenshots, the group admin briefly kicked out each and every player of their Kakao chat thread, sooner than sending a last message of “Thank You.” This data was once corroborated via a Twitter thread, which added that the admin’s message on their now-defunct Kakao profile was once a terse however excessively formal apology.

Between the pockets transfers, suspicious website online process and the admin’s particular apology, this go out rip-off is ready as by-the-book as they arrive. Duplicitous actions equivalent to this are a routine risk on the earth of ICO launches, which paperwork a big a part of the reasoning why South Korea banned ICOs altogether.

Having dedicated against the law even sooner than stealing such huge sums of cash, the nameless directors of Natural Bit are most probably in for some intensive criminal troubles. As one commenter within the Reddit thread remarked, the South Korean executive is perhaps “sizzling on their tails.”

Even with out the specter of go out scams, South Korean regulation enforcement is well-used to coping with regimen cybersecurity threats, as the arena’s greatest crypto hacking syndicate, which is actually subsidized via the North Korean executive, has centered South Korean cryptocurrency exchanges on quite a lot of events. 

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