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1  Alternate cryptocurrencies / Announcements (Altcoins) / SEC Halts Fraudulent Scheme Involving Unregistered ICO " CENTRA : CTR " on: April 03, 2018, 12:11:19 AM
FOR IMMEDIATE RELEASE
2018-53

Washington D.C., April 2, 2018 —
The Securities and Exchange Commission today charged two co-founders of a purported financial services start-up with orchestrating a fraudulent initial coin offering (ICO) that raised more than $32 million from thousands of investors last year.  Criminal authorities separately charged and arrested both defendants.   

The SEC's complaint alleges that Sohrab “Sam”¯ Sharma and Robert Farkas, co-founders of Centra Tech. Inc., masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a "CTR Token."¯  Sharma and Farkas allegedly claimed that funds raised in the ICO would help build a suite of financial products.  They claimed, for example, to offer a debit card backed by Visa and MasterCard that would allow users to instantly convert hard-to-spend cryptocurrencies into U.S. dollars or other legal tender.  In reality, the SEC alleges, Centra had no relationships with Visa or MasterCard.  The SEC also alleges that to promote the ICO, Sharma and Farkas created fictional executives with impressive biographies, posted false or misleading marketing materials to Centra’s website, and paid celebrities to tout the ICO on social media. 

According to the complaint, Farkas made flight reservations to leave the country, but was arrested before he was able to board his flight.  Criminal authorities also arrested Sharma. 

"We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses,” said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement.  “As the complaint alleges, these and other claims were simply false."

"As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme,”¯ said Steve Peikin, Co-Director of the SEC's Division of Enforcement.  “Endorsements and glossy marketing materials are no substitute for the SEC’s registration and disclosure requirements as well as diligence by investors.”

The SEC’s complaint, filed in federal court in the Southern District of New York, charges Sharma and Farkas with violating the anti-fraud and registration provisions of the federal securities laws.  The complaint seeks permanent injunctions, return of allegedly ill-gotten gains plus interest and penalties, as well as bars against Sharma and Farkas serving as public company officers or directors and from participating in any offering of digital or other securities.  In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Sharma and Farkas. 

The SEC's investigation, which is continuing, is being conducted by Jon A. Daniels, Luke M. Fitzgerald, and Alison R. Levine of the SEC's Cyber Unit and New York Regional Office, and supervised by Valerie A. Szczepanik and Robert A. Cohen.  The litigation is being conducted by Mr. Daniels, Mr. Fitzgerald, and Ms. Levine, and supervised by Ms. Szczepanik.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.

Investors in the Centra ICO who believe they may be a victim should contact www.SEC.gov/tcr.  The SEC's Office of Investor Education and Advocacy has issued an Investor Bulletin on initial coin offerings and additional information is available on Investor.gov and SEC.gov.


Source:   https://www.sec.gov/news/press-release/2018-53
2  Alternate cryptocurrencies / Tokens (Altcoins) / SEC Halts Fraudulent Scheme Involving Unregistered ICO " CENTRA : CTR " on: April 03, 2018, 12:08:54 AM
FOR IMMEDIATE RELEASE
2018-53

Washington D.C., April 2, 2018 —
The Securities and Exchange Commission today charged two co-founders of a purported financial services start-up with orchestrating a fraudulent initial coin offering (ICO) that raised more than $32 million from thousands of investors last year.  Criminal authorities separately charged and arrested both defendants.  

The SEC's complaint alleges that Sohrab “Sam”¯ Sharma and Robert Farkas, co-founders of Centra Tech. Inc., masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a "CTR Token."¯  Sharma and Farkas allegedly claimed that funds raised in the ICO would help build a suite of financial products.  They claimed, for example, to offer a debit card backed by Visa and MasterCard that would allow users to instantly convert hard-to-spend cryptocurrencies into U.S. dollars or other legal tender.  In reality, the SEC alleges, Centra had no relationships with Visa or MasterCard.  The SEC also alleges that to promote the ICO, Sharma and Farkas created fictional executives with impressive biographies, posted false or misleading marketing materials to Centra’s website, and paid celebrities to tout the ICO on social media.  

According to the complaint, Farkas made flight reservations to leave the country, but was arrested before he was able to board his flight.  Criminal authorities also arrested Sharma.  

"We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses,” said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement.  “As the complaint alleges, these and other claims were simply false."

"As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme,”¯ said Steve Peikin, Co-Director of the SEC's Division of Enforcement.  “Endorsements and glossy marketing materials are no substitute for the SEC’s registration and disclosure requirements as well as diligence by investors.”

The SEC’s complaint, filed in federal court in the Southern District of New York, charges Sharma and Farkas with violating the anti-fraud and registration provisions of the federal securities laws.  The complaint seeks permanent injunctions, return of allegedly ill-gotten gains plus interest and penalties, as well as bars against Sharma and Farkas serving as public company officers or directors and from participating in any offering of digital or other securities.  In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Sharma and Farkas.  

The SEC's investigation, which is continuing, is being conducted by Jon A. Daniels, Luke M. Fitzgerald, and Alison R. Levine of the SEC's Cyber Unit and New York Regional Office, and supervised by Valerie A. Szczepanik and Robert A. Cohen.  The litigation is being conducted by Mr. Daniels, Mr. Fitzgerald, and Ms. Levine, and supervised by Ms. Szczepanik.  The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the Financial Industry Regulatory Authority.

Investors in the Centra ICO who believe they may be a victim should contact www.SEC.gov/tcr.  The SEC's Office of Investor Education and Advocacy has issued an Investor Bulletin on initial coin offerings and additional information is available on Investor.gov and SEC.gov.


Soruce:  https://www.sec.gov/news/press-release/2018-53


Can any admin delete this please. posted it in wrong section
3  Alternate cryptocurrencies / Speculation (Altcoins) / Bittrex Big Coins: 10% 20% 30% 40% 50% Till 100% Profit. on: August 31, 2017, 12:49:09 AM
Hey,

Zzzzzz

This topic is not to advise peoples to buy or sell, So go cry out there if you choose to believe an advise and the trade get wrong. This thread is only for advanced traders.  

Only bittrex Big coins/High volume with a potential of gain between 10% And 100% Max suggestions and not the coins thay get pumped very high then dumped very low the same day.

Yes we know that a coin can make more than 100%, but thats a very conservative thread.

Advanced traders does not need help to know what to do if a trade fuck up, or how much money they need to invest , or... no babysitting there.

For babysitting you can check threads for newbies or crate threads for help.

This thread is only for very conservative trades, like bitcoin vs cash trade or big coins with high volume when they are in consolidation level, or coins with high hype to get pushed for high prices...

Its up to you to give us your suggestions. I'm not going to start giving mine before this thread get on the road by traders  trades suggestions, if not let this thread die.

Last thing. Why do you need to do this? maybe for the love of the christ Grin Anyway i'm not a believer.


Give the coin name, entry price in btc , exit price in btc. And if you feel good you can give an explanation, but you are not forced.





4  Alternate cryptocurrencies / Speculation (Altcoins) / Best altcoin to buy on bittrex right now, hurry!! on: August 06, 2017, 11:01:05 AM
Elastic (XEL)

Potential of x5 to x10 From a price of 19.000 Sat right now.

I saw x10 more than x5 for a price of 200.000 Sat at end september 2017.

i make all my home work.

The biggest gain on bittrex from now untill end september is this.

Prediction accuracy? 100%
5  Alternate cryptocurrencies / Speculation (Altcoins) / 🚀🚀🚀🗳 The New Era of Bittrex Big Pumps Starting HERE🗳 🚀🚀🚀 on: July 31, 2017, 09:27:26 PM
Hey hey!!

A lot of peoples asked me to make another pump and dump shittycoins threads.

Here we are, i created this thread for all my new shitcoins predictions.

My old shittycoins predictions:
https://bitcointalk.org/index.php?topic=2040766.0
https://bitcointalk.org/index.php?topic=1931731.msg19178141#msg19178141

I Gonna start this on middle august i think, But before i need to make more adjustments.

I checked a lot of pump and dump groups, they are:
  
   1/ Big Liars.
   2/ Amateurs, they dont choose the best coins to pump, so after a minute of the pump, you can stay a   bagholder for weeks months or forever.
   3/ They cares only about themselves, and the rest are losing money.
   4/...
   5/...
   ......


With a lot of knowledge and very hard work on data about shittycoins, i invested in more than 30 shittycoins last 2 Months, 95% Turned to have big gains. I Cant give you my strategy, but what i can said is a huge work that i update everyday.

The truth is: i dont need any one of you, because when i jump on a shittycoin it got pumped with a normal behavior, so not an ordered pump, thats how big the potential of the pump i predict. they dont need to be posted anywere to get more and more pumped, they do it by themself.

To help more the pump, i gonna post the name of the coin after i buy it. in this case we have 2 scenarios:

  1/ i wait till the coin is pumped by more peoples then i invite you to buy it late for a 20% to 100% gain.
  2/ i invite you directly after i bought it, So you can won more.

For me i gonna choose the scenario number 1. its better for me and for you. Why?: cause i gonna won more like that, if you bought right after i buy, you gonna kill the pump by your sell orders. Also its better for you because you have nearly no risk to buy and wait days or weeks for the pump.

All is calculated, At the moments i put the coin name, you can make between 20% to 100%. So 95% of times you gonna won money than loose it( dump just after you buy).


I Gonna make more posts before this started to give you the strategy you have to use to take a profit, how much % of your portfolio you have to invest..

I Cares about myself and also about you in this order  60%  40%.

A pump is not always high and high prices, but it start with a pump then a dump then a pump then a dump pump then a dump and so on till the price go very high.

4 Exchanges are very carefully choosen between all exchanges. Believe me, i checked all the exchanges listed on coinmarketcap. 1 of those 4 is Bittrex. The choosen shittycoin gonna always have the best potential on the 4 Exchanges. Gonna give you the next exchange name days before i tell you the shittycoin name.

Well i gonna give more informations by editing this same post, so read it always to found the new adjustments. I just want to start this topic at least 2 weeks before i choose a coin, like that more peoples gonna have the chance to profit.

Dont hesitate for suggestions.







PS 1: I dont have anything to hide, if someone have a good suggestion and want to send it private to me, dont. thats a new way of pumping where all is open source to all.

PS 2: Read all this topic to get it all, and read my last 2 threads speculations too to know thats a win win pump strategy where no bagholders left.
  
PS 3: Gonna always edit this post to make all adjustments in 1 post.
 
6  Economy / Speculation / What is goin on with bitcoin price right now? 27/07/2017 on: July 27, 2017, 09:35:36 PM
+ 100 Dollars in about 30mn, and its rising..

Any news for that?
7  Alternate cryptocurrencies / Speculation (Altcoins) / The best Altcoin to buy right now on Bittrex. Hurry!! on: July 22, 2017, 08:20:46 PM
Hey Hey !!

ZZzzzzz.. I Gonna give you the best Altcoin to buy right now on Bittrex, and gonna tell you why:

1/ This coin had the lowest marketcap on Bittrex: 600K Dollars only.

2/ Because of his low marketcap, it have the best chance to Moon very very high.

3/ It was listed to be delisted on 14 July 2017 then removed from the delist list. What that means? this coin is not going to be delisted in the next months.

4/ Compared to others low marketcap on bittrex, it have the lowest marketcap + other lowest marketcap coins can be delisted next days or weeks who knows.. but this coin cant!!

5/ What the hell are you waiting? Buy now UnbreakableCoin (UNB) or you gonna regret it!!


PS: I Already buy some, and i'm not going to sell until it reach at least 10Mil marketcap.
8  Alternate cryptocurrencies / Speculation (Altcoins) / The biggest bubble explosion of all times on: July 16, 2017, 10:23:33 PM
Zzzzz

Cryptocurrencies marketcap: From 115 Billions dollars on 24 Juny 2017 To 61 Billions on 16 July 2017.

Minus 54 Billions dollars in 3 Weeks, around -45%. Veeeeeeeew

My predication?

The Marketcap gonna go to 20-30 Billions dollars before August 1.

Bitcoin gonna go less than 1000 Dollars, ethereum less than 40 Dollars and so on.

All Altcoins increase last 4 months gonna be taken, and we are going to have the prices of march this year on August 1.
9  Alternate cryptocurrencies / Altcoin Discussion / 2017 ICO Profit / Loss on: July 07, 2017, 06:43:27 PM
Hi,


Lets say 100 ICOs lunched from january to april 2017.

In our exemple Brian invested 1 Btc in every ICO for a total of 100 BTC.

Those 100 ICO are already on exchanges now, so if Brian wanna sell, he can.

Question: is Brian making more than he invested or less now with his 100 BTC investment?


I'm talking about someone who invested in all 2017 ICOs till now, 1BTC Each ICO. is he in profit right now?

Give a speculation in % of his winning or loss on this day.




PS:

If someone can get us the real data about all ico lets say like this:

ICO Price with or without bonus  / Price Day-1when listing on exchange / Price Day-30 when listing on exchange / Price Day-60 when listing on exchange / Till Today.

Then make more deep stats about selectionned ICOs with some criteria, like enthousiast of peoples before ico and make the same thing.

It can be huge data for investments.
10  Bitcoin / Bitcoin Discussion / Very Clear Article about Bitcoin Situation those days... on: June 26, 2017, 07:43:14 PM


By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - Bitcoin fell to a three-week low on Thursday as investors took profits partly in response to a bearish report from Goldman Sachs (NYSE:GS) as well as concerns about a Chinese bitcoin miner's plan to undertake a "hard fork" that will result in a split in the digital currency.

The virtual currency relies on "mining" computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. The first to solve the puzzle and clear the transaction is rewarded with new bitcoins.

Bitcoin fell as low as $2,120 on the Bitstamp on Thursday and was last down 6 percent at $2,290. On the week, the currency has fallen about 22 percent, on track for its largest weekly slide since December 2013.

On Monday, bitcoin hit a record just shy of $3,000. So far this year, bitcoin remains up 137 percent.

Sharp losses such as Thursday's are par for the course for an asset like bitcoin, analysts said. Over the course of its eight-year history, Bitcoin has on a daily basis risen as much as 18 percent and fallen as much as 13 percent.

Greg Dwyer, business development manager at crypto-currency trading platform BitMEX, said bitcoin's decline may have started on Monday when Goldman Sachs analyst Sheba Jafari said in a report, "The balance of signals are looking broadly heavy" for bitcoin.

Jafari was "wary of a near-term top ahead of $3,134, adding that investors should consider re-establishing bullish exposure between $2,330 and no lower than $1,915."

Analysts also said investors were spooked by Chinese miner Bitmain's plan to undertake a "hard fork" of bitcoin if a code upgrade on the currency is activated late this summer.

Under a "hard fork", Bitmain would create an entirely new version of the bitcoin blockchain, resulting in an entirely new bitcoin currency, separate from the original currency.

Bitmain's move was in response to proposals that attempt to solve the bitcoin network's limitations in processing millions of daily transactions. Bitcoin's network has not kept pace with its growth and is unable to process all the transactions fast enough.

"Traders are concerned with what a fork could do to their holdings and most likely now converting to fiat (government currencies) until some clarity about the scaling debate comes to light," said BitMEX's Dwyer.
11  Alternate cryptocurrencies / Altcoin Discussion / The New ERA of no fee transactions Started ! on: June 15, 2017, 11:44:35 PM
After years of Altcoins and more than 1000 Coins created, the next step in cryptocurrencies is just starting now.

There is a big difference between concepts, strategies.. and real applications for those concepts with putting your own money and energy.

The state of semi maturity of crypto world gonna lead us to more decentralised coins with no fees.

More and more peoples gonna choose the new paradigm over the old ones ( miners fees, nodes fees..).

Its gonna be an earthquake. The transition from the dominant bitcoin, ethereum and others top listed coins to the new era of new and more decentralised coins.

Those new coins had to have no fees, be very secure, and way too decentralised than the old paradigm.

It have to cares about poor peoples who have less than 1dollar in account and want to be treated like a king from the coins they hold ( no fees, very very speed transactions) and from exchanges too. have the possibility to buy and sell with a cent of dollar if they want.

So we need 2 things to be in the new era:

1/ New potential coins, no fees, very secure, way more decentralised.
2/Exchanges have to buy more servers to affrod micro cents buy and sell.
12  Alternate cryptocurrencies / Altcoin Discussion / The king is already dead. on: June 15, 2017, 01:31:28 AM
Well well,

I announced it before, but now its official: The king Bitcoin is death.

Who killed it? miners with their big fees day after day. its 7 dollars right now and gonna increase day after day.

Bitcoin is no longer suited for small transactions, speed stransactions. Peoples with small account are no longer welcome by Bitcoin miners.

Ethereum gonna be the new king for some months, but he is like bitcoin.
With increasing fees gonna be dead soon too.

When i said dead it means no longer number 1.

And then a third new king gonna came and stay there for maybe years, a king Altcoin with free transactions fees, very speed and secure transactions.

Maybe this king  is already there: IOTA .
With something innovative than the very slow and high fees blockchains system.

It is sure that IOTA gonna be the next king, and from there the real decentralised decade of Altcoins gonna start, with more projects more decentralised than IOTA to try to be the Futur King.

I'm not an IOTA, Bitcoin, Ethereum defender, i dont give a shit about them. my only concerns are a fair,secure, too much decentralised, with no fees coins to be the new model.

13  Alternate cryptocurrencies / Altcoin Discussion / Are You looking for x10 x100 return in a months? on: May 24, 2017, 04:34:05 PM
Hey hey,

Have you missed the x100 train of Ripple? Are you tempted by futur x10 on Stellar lumens... Forget about them.

There is a train of x100 in months from now, going to the moon.

Yes thats the first time in history that a train gonna fly til the moon.

Verge, its the name of that train, listed on bittrex, its going to be X10 in a Weeks then X100 next couple of months.

The biggest returns coins are the one with billions coins supply, see what happens in ripple and stellar.

Verge is now around 62 sat, The whales gonna pump and dump it for the next months, and it already started, the price has gone from 5sat to 66sat in 2weeks. Thats a x13 potential win in 2weeks for weak hands who solded it at this price.

The 24H vol jumped from 50K Dollars to 6Millions dollars last 3days.. The Whales are already there.

So overal thats at least a x1000 potential going to neptune in a delay of months.
14  Alternate cryptocurrencies / Altcoin Discussion / New Masternode Projects on: May 21, 2017, 07:35:01 AM
Hi there,

I search for a new cheap projects with masternode, like XtraBytes who went from 1sat to 750sat in less than a month.

Thats a x700 winning % and the project is just in begining phase.
15  Alternate cryptocurrencies / Altcoin Discussion / The Whales Waves. on: May 15, 2017, 11:46:25 PM
Hi there,

Like a lot there already know, there are a big Whales swimming in the deep water of altcoins.

Because the altcoins is so volatile, there is a huge opportunity for them to  bump and dump then bump and dump then another bump and dump...Every day on differents Altcoins.

My question: How to detect the first waves of whales minutes or seconds before/after the big bump?

The only way i know is to found a pump and dump market in period of stagnation, then make a buy order and wait for the Big waves pump.

Problem with this strategy is: my money gonna be blocked for days or weeks maybe months waiting for the pump (Cold money), in the same times Whales gonna pump most likely every days, more than 1 market.

So i wanna know if there is a way to ride those waves before the pump starting in minutes or seconds, or a seconds after it start, like that i can surf with them everyday they bump a market.

16  Alternate cryptocurrencies / Altcoin Discussion / DDos Attacks.. Its time to buy buy and buy on: May 10, 2017, 03:07:02 AM
Hi there,

The cryptocurrency members is growing day after day, the new members and the newbies one who doesnt get a fuck what was happening with DDos attack gonna put Bitcoins on market and gonna buy altcoins, the price gonna start to increase overall, then the traders gonna put money too on altcoins for the profit, some of them gonna set buy orders of 5% 10%.. next hours days, t'il 1week from now, all gonna be back like before if we dont have another DDos attacks.

All the crypto community is more mature now and they gonna be more mature in 1 week from now after the green light on most altcoins listed on poloniex, some of them gonna regret to not buying now, thats a huge possibility to make money right now.

Those who saids thats the end of good established coins or shitty coins are very wrong, because 3 big factor :

 1. the new members buying bitcoin to invest on other coins for a dream of becoming super rich.

 2. The wales who gonna take advantage of the new members, so putting buy sell orders everyday for always.

 3. the same emotionnal people who had set a sell panic orders after the attacks are not going to resist to    reinvest  on the other coins for a quick profit.



The bubble already explosed. Now we are in small bubble, after that its gonna be so phuking green.

So buy buy and buy now!!
17  Alternate cryptocurrencies / Altcoin Discussion / Buy 44 Altcoins on exchanges tomorrow for a total of 4000$ after DDos Attacks on: May 08, 2017, 02:44:03 AM
Hi there,

Like i said in the topic, i already make my searchs on my target Altcoins, 44 at all. So i gonna set my orders and buy them on differents exchanges tomorrow.

i plan to hold them between 2months to 2years, depends on best time to sell.

I wanna know the best way to keep them safe, like i read on differents topics, those exchanges can be hacked or closed by the FBI, so its a bad place to hold them.

For now i dont know how to handle that, those 44 Altcoins goes from shitty one listed on only one exchange to the big ones listed on poloniex.

Help me please, where to hold em safe? and how?

Thanks.
18  Alternate cryptocurrencies / Altcoin Discussion / Deception is King on: May 02, 2017, 12:16:37 AM
Hi,

i read all SONM pages, first topic and 2nd one.

i do that because i'm a newbie and wanted to understand more. by reading all on that project, i understand now that, if u have a question on a specific altcoin and u get an answer from a guy with the same altcoin logo, that means nearlly this is a bullshit comment, why? : because they need to post a certain amounts on messages  per week, saying very nice thing about the specific altcoin, to get a very very small bounty... they can saids anything to boost the manipulation for a very low penny! guess what? this penny is not in dollar or btc, but with an Altcoin that can be a scam, the holder have to hold it for a month or maybe a year to exchange his penny versus btc ou tusd.  Thats how low and cheap to buy peoples talks and opinions on bitcointalk.

i also saw the holders of pre-ico or ico saids anything to boost the coin, no mather if the coin is related to scam accusations ( i'm not talking about SONM THERE but in general).

About SONM... it doesnt smell too good for me to invest on. i know from my personnal experience how the first steps in a big project to success have to be in general, because they are the pillar of the emotionnal ressources.

I also understant that the holders of big informations about An altcoin Ico, who knows a project is a 99% Success , doesnt talks, thats means there is a King law there: Deception, and u have to learn about it in your own costs.

Yes of corse there is always exception, but the Trend is Deception.

I'm not judging anyone, i just saids some facts to the new newbies like me to be careful.
19  Alternate cryptocurrencies / Altcoin Discussion / ICO-Alert report on TaaS on: April 29, 2017, 05:10:54 PM
UPDATE: Due to overwhelming community demand, we have decided to release the entirety of the TaaS report for free to further substantiate our findings. You can download it here: https://www.icoalert.com/special-ico-alert-report-taas

This is going to be a long post, but the information contained within is of great importance to the cryptocurrency community.

My name is Rob, and I'm the Founder of ICO Alert, a comprehensive list of all active and upcoming cryptocurrency Initial Coin Offerings.

You may know me from my posts about the launch of ICO Alert, or about that time someone accidentally sent 32 ETH to the ICO Alert donation address.

We recently launched an ICO Report feature that provides in-depth analysis of upcoming ICOs so that you can determine which are worth investing in. During our analysis of TaaS, a tokenized closed-end fund, we stumbled upon some shocking connections. We found that many of the TaaS team members are directly linked to Bitup, a suspected ponzi scheme. In addition, we found huge holes in the cryptographic audit TaaS plans to employ that could jeopardize the sustainability and solvency of the entire fund.

We usually charge a small fee (0.2 ETH / $10) for our reports, but decided that we cannot in good conscience keep the most shocking revelations from the TaaS Report behind a paywall. We believe it is our obligation to the community to distribute this information since the entire TaaS fund may be a scam. You can still purchase the 32 page detailed report here if you'd like, but many of the main revelations are posted below:

The TaaS team and their links to Bitup, a High Yield Investment Platform (aka Ponzi Scheme)

Our research has identified deep connections between the four founding members of the TaaS project — Ruslan Gavrilyuk, Konstantin Pysarenko, Maksym Muratov, and Dimitri Chupryna — and the #bitup investment platform. Several aspects of the Bitup platform resemble strongly characteristics and activities of High Yield Investment Platforms, more commonly known Ponzi Schemes. Bitup advertises fixed daily returns that are not dependent on market or investment performance; users are also offered a percentage of the total investment deposited into the fund by new users they refer. These are the typical characteristics of a ponzi scheme.

Individuals who have been involved in the cryptocurrency space for any meaningful duration will quickly identify the Bitup platform as one of many HYIP (High Yield Investment Programs) Ponzi Schemes developed to defraud new entrants into unregulated markets.

Konstantin Pysarenko

Konstantin Pysarenko, the Vice President of the TaaS project, lists experience in founding ‘several startups around the world in food manufacturing, geological oil and gas surveying, and international aviation sales’. Our research struggled to verify these claims as only previously discussed Geo–Earth Resources and Bitup were listed on Mr. Pysarenko’s Linkedin page; deeper inquiry, however, did yield some further information regarding Mr. Pysarenko’s previous work experience.

According to both Mr. Pysarenko’s profile on the TaaS Executive Team and Linkedin page, Konstaintin graduated from the University of Buckingham in 2011 with a degree in Entrepreneurship. Leveraging this information, our research uncovered two profiles of Mr. Pysarenko that appear to align with his given educational timeline and stated work experience5, both written in the first person (indicating Mr. Pysarenko himself prepared the profiles) — one while studying at the University of Buckingham, the other subsequent to the completion of his studies.

Here Mr. Pysarenko indicates that his experience includes publishing, perishable import/export, printing services, cigarette manufacture, and some involvement with aviation sales via his father’s business. Food manufacturing, as stated in Konstantin’s TaaS bio, appears to consist of flour exports and tea imports to and from Africa; no mention is made of experience in geological oil and gas surveying, and international aviation sales appear to be based on involvement with Mr. Pysarenko’s family business. No verifiable indication is given that any of these positions were held at any point in the past or currently in the capacity of a founder, and in the case of aviation sales we believe there is a strong indication that Mr. Pysarenko was explicitly not a founder in any capacity.

Ruslan Gavrilyuk

Mr. Gavrilyuk’s bio on the TaaS Executive Team indicates experience ‘found- ing and managing projects in geosciences, mobile money solutions, oil and gas operations, precious metal mining, sports and fashion’. Our research has been unable to verify any of these assertions; Mr. Gavrilyuk’s LinkedIn page indicates (excluding TaaS) only founding involvement with Geo–Earth Resources and Bitup that are not indicated on either organization’s website or anywhere else. We find the total lack of verifiable connections between any of Mr. Gavrilyuk’s stated experience or credentials to be one the most alarming revelations uncovered from our research.

Bitup Financial Analysis

In July 2016 Bitup began publishing reports outlining their portfolio alloca- tions, trading activities, and general analysis of the cryptocurrency space. These documents list the coins on Bitup traded on the Poloniex market, and some (not all) give the opening and closing dates of particular trades. Documents also list the total monthly portfolio allocation for each coin traded.

Our researchers analyzed the daily volume in BTC for those coins on trades where entry or exit dates are provided and identified those dates on which volume was so low that calculations for the total value of the portfolio allocation for a particular coin could be calculated by generously assuming the full 24 hour daily volume17 represented only the trade conducted by Bitup. This calculation does not give an accurate estimate of the actual AUM of the Bitup trading portfolio, but it does enable us to understand (assuming the portfolio allocation statistics are correct) the maximum possible value of the portfolio on a given date. Deeper analysis of the Bitup Financial statements can be found in the full report under Appendix B: Bitup Financial Analysis.

This analysis indicates that as late October 9th, 2016, Bitup had no more than $60,000 AUM across their entire trading portfolio. In particular, a trade opened by Bitup traders on Nautiliscoin (NAUT) on October 9th accounted for 20% of the total portfolio allocation for the month of October. Volume on Poloniex for the entire 24 hour period of October 9th was 18.82 BTC, and the Bitcoin closing price was $614.62. Attributing all trading volume for the 24 hours of October 9th to Bitup (a wildly generous assumption), the total daily volume USD equivalent comes to $11,567.15. If this value represents 20% of the Bitup trading portfolio, the total value of the portfolio can be calculated at $57,835.74. Again, this uses a nearly impossible assumption of attributing all of the day’s volume to one trade, so the true AUM is very likely substantially less than what has been calculated here.

If the four founding members of the TaaS platform are as deeply involved with the development and operation of the Bitup platform as our research suggests, at the very least questions are raised about the ability of the Bitup, and therefore TaaS, trading team to manage investments and trading strategies involving 1,000 times the AUM they managed at Bitup, as they will be at TaaS. More broadly, any one team member’s involvement with this type of cryptocur- rency HYIP Ponzi scheme should be cause for concern. With four co–founders involved, it is difficult to deny at very least the appearance that TaaS is an extension or evolution of the Bitup project, with remarkably higher AUM and the substantial investment management challenges that entails. Risks of slippage on trades (when acquiring large positions rapidly drive up the price of the asset, limiting potential profitability) and a simple lack of liquidity sufficient to exit positions at profitable prices represent just a few of those challenges.

Trading Methodology & Cryptographic Audit

Our analysis revealed several inconsistencies and very few indications that the author of the TaaS white paper or the TaaS team at large have an understanding of the challenges associated with successfully investing millions of dollars of AUM.

Our analysis leads us to believe that the Cryptographic Audit technology be- ing developed by TaaS is being leveraged to obfuscate and deflect questions regarding the true nature of the TaaS trading methodology, while also representing a grave risk to the profitability of the fund. Nevertheless, we believe the Cryptographic Audit technology is the only software actually in development by the TaaS team and represents the only value investors can realistically expect to gain from the TaaS project.

The Cryptographic Audit section of the TaaS whitepaper very strongly appears to have been prepared by a different individual than the rest of the document; the formatting is substantially improved, the charts and diagrams are filled with information (in contrast to the glaring lack of information in the ‘Trading Methodology’ section), the English grammar and vocabulary are substantially improved, and the use of footnotes is liberal and meaningful.

We believe the proposed Auditable Exchange Accounts development and implementation represent extraordinary risks to the success of the TaaS trading methodology and the project as a whole. A system that reveals to anyone, at any time, the specific trading actions being performed by any investor or fund with a substantially large portfolio is nothing short of an invitation for every enterprising individual investor, other trading outfits,experienced algorithmic trader, or youngster with a Poloniex bot and copious free time to create trading strategies developed exclusively to siphon money from the TaaS fund as effectively as can possibly be devised. The risks of front running predicted positions, pumps and dumps during accumulation, or any number of other actions competing traders can use to negatively impact the TaaS methodology (whatever it turns out to be) are dangerously and shockingly amplified if every detail of every trade is made available in the way being described in the Auditable Exchange Accounts implementation. Leaving aside any other improprieties identified through our research, this oversight alone indicates to our analysis a risk so great to invested capital and the project as a whole that we could never in good conscious recommend purchasing TaaS tokens or becoming involved with the TaaS project in any capacity.

Closing

While this is obviously a tremendous amount of information to process and digest, there is a significant amount of information not included here, but included in the full report, that further substantiates these claims and also links the TaaS team members to a mysterious Geo-Earth Resources based in Lagos, Nigeria.

The implications of this report are shocking, and one that we do not take lightly. We have completed this report as quickly as possible due to the severity of the matter, and have decided to release this significant portion of the report to the community, as we believe we have an obligation to do so.

Source : https://www.reddit.com/r/ethtrader/comments/66xc1a/breaking_taas_team_has_strong_links_to_suspected/

I Was hoping to invest about 2000$ if it was legit, but not anymore!
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