SCAM ALERT!! Adab Solutions - So Called Islamic Crypto Exchange is Haraam

[coinsvision]

Hello
I want to share this article with bitcointalk community. This is about ADAB Solutions Exchange, major red flags. https://medium.com/@douglaslyons/adab-solutions-exchange-major-red-flags-found-76a86d02e01b?fbclid=IwAR07tXklAZfXCbQcdsAGBmT7ZY0oZ0knBkatMIjy0rdILpgUOgfiDbfwHuI

[Coinfan]

Using religious qualifications on business activities in order to promote a enterprise is considered malpractice on most States.

Doing that on abusive terms is a major red flag.

The Russian bounty scammers whitetoo and his alt-accounts 520bit and RoyalTeam as well as other sock-puppet accounts are colluding with the Kazakh trio team leaders that are behind the Adab Haraam exchange scam.

Nothing like trying to get their real life names and expose them.

[JollyGood]

This is part of the article on Medium about the Adab Haraam exchange being a scam:

https://medium.com/@douglaslyons/adab-solutions-exchange-major-red-flags-found-76a86d02e01b?fbclid=IwAR07tXklAZfXCbQcdsAGBmT7ZY0oZ0knBkatMIjy0rdILpgUOgfiDbfwHuI



ADAB Solutions Exchange- MAJOR RED FLAGS FOUND

I recently evaluated the ADAB Solutions project (First Islamic Exchange).

After looking at the comments and scoring given by other “experts”, I was shocked given what I found (or couldnt find).

First and foremost; both the CEO and COO have 0 verifiable work experience. I communicated directly with the CMO and was provided a link to a website for Vangaurd (http://vanguardconsulting.kz/) and told that this is an example of the “experience” of the CEO. After reviewing said website, nothing was found to indicate any involvement of the CEO, and even if there was, this particular business wouldnt qualify anyone in my opinion.

Based on the fact that not only is there 0 verifiable work experience, I am shocked that this project would be given any type of positive evaluation given the fact that as is the intent of the project (crypto exchange) you would think that a serious background in both finance and business would be required, given the potential funds at stake

ADAB Solutions sincerely believes that by following the norms of Sharia, we will be able to perform the moral and socially acceptable behavior, by exclusing all the possibilities of manipulations or speculations within business operations”.

based on this statement taken from the project information, it is my belief that the assertion here is that; because they intend to follow “Islamic Law”, that investors/clients can be assured of security and without the fear of “immoral” behaviour. This to me is nothing more than a marketing ploy, meant to decieve investors into thinking that some type of “moral standard” exists here that is not practiced elsewhere. It is also my understanding that the CEO/COO and Deputy CEO are not even Muslim.

Regardless of one’s own religious beliefs, I can’t think of anything much more cynical than adopting the principles of a religion that is not your own in order to deceive its followers.

Here is an example of a similar ploy perpetrated under the guise of being Shariah “compliant”. https://www.cbc.ca/news/canada/toronto/2-men-defrauded-shariah-compliant-mortgage-holders-of-millions-of-dollars-crown-tells-trial-1.4867083

[Coinfan]

Taking in account the relative anonymity of cryptocoins, an exchange assuring that all the deposit funds are from an origin that respects islamic rules is a red flag.

If they don't follow Islam, but created a so-called "islamic exchange", that is a major lie that destroys any trust a potential customer has to have on them.

[TycheChi]

Would you invest in an ICO for a Vegan cake baking company called "Vegan Cakes For All"? Sure why not if it is a good investment?

But if that "Vegan Cakes For All" company was using using cows milk in all of its Sponge Cake products and using pork fat in all of its Carrot Cake products then how can that company called itself "Vegan Cakes For All"? If they want to trade then remove the word "Vegan" and call yourself "Cakes For All" because they are lying and misleading and scamming therefore are thieves.

The moment they drop the word "Vegan" they seize being lying, misleading, scammers and thieves and become a legitimate business.

If the Adab Team cannot check the "purity of the source of the money" that investors send, or if the Adab Team cannot check the "moral standing of each investor" then they can continue to create their exchange but they should remove the word "Shariah".

=======

ADAB - They call themselves (FICE) First Islamic Crypto Exchange but beware because this is not based on the "Shariah" or Islam.

This is a scam project because they are selling their project and the ICO on the foundations of calling it Shariah compliant when this whole project cannot be Halal or Shariah compliant.

This is not Muslim, Halal or Shariah compliant project. This is a project run by a team, some of who claim to be Muslim and some are not. The "team" are saying this is a Shariah compliant exchange without explaining which interpretation of Islam they follow.

Because they have no vetting system in place to ensure investors buy in to the ICO with Halal/permissible money, it means (by default) they are willing to take investment from the following and more:

pimps
pimps
prostitutes
porn actors
those currently behind bars in prison serving prison sentences
those that sell drugs/narcotics
those that manufacture, test and sell weapons
those that own publications online/print media cursing Muslims and those that have anti-Muslim agenda
those that own, transport or sells alcohol
those that own breweries and manufacture alcohol


Any investment from the above and more means the project cannot be "Shariah" compliant yet these clowns say they are offering a Shariah compliant exchange?

How do you know that they have no vetting system in place ?

Your first premise that it is "money" is incorrect. In a lot of jurisdictions Bitcoin is considered a digital asset and has no legal tender status. It is more of a "financial product".

How Sharia applies to Islamic financial transactions:

Sharia prohibits riba, or usury, defined as interest paid on all loans of money.
Investing in businesses involved in activities that are forbidden (haraam).
Charging extra for late payment.
Maisir. This is usually translated as "gambling" but used to mean "speculation" in Islamic finance
Gharar This is usually translated as "uncertainty" or "ambiguity". Bans on both maisir and gharar tend to rule out derivatives, options and futures.
Engaging in transactions lacking "`material finality`. All transactions must be "directly linked to a real underlying economic transaction", which excludes "options and most other derivatives"

In general -Islamic financial institutions do the following:

Islamic institutions are to collect zakat (obligatory religious gift)
A board of Shariah experts is to supervise and advise each Islamic bank on the propriety of transactions to "ensure that all activities are in line with Islamic principles".
Risk sharing. symmetrical risk and return on distribution to participants so that no one benefits disproportionately from the transaction.

Customary practice is to take the word of clients that they will not use funds for unIslamic activities and do not deposit funds derived from unIslamic activities.

Because compliance with shariah law is crucial in Islamic finance, Islamic banks and banking institutions that offer Islamic banking products and services should establish a Shariah Supervisory Board (SSB) — to advise them on whether or not some proposed transactions or products follows the Sharia, and to ensure that the operations and activities of the banking institutions comply with Shariah principles

According to various Islamic banking organizations some requirements for SSBs include:

- That they be composed of jurists specializing in fiqh al-muamalat i.e. Islamic commercial jurisprudence, (Accounting and Auditing Organization for Islamic Financial Institutions, AAOIFI)
- Their fatwas (legal opinions) and ruling be binding, (AAOIFI)
- That they have at least three members, (Institute of Islamic Banking and Insurance)
- That their members not be employees of the financial institution they supervise;
- Be appointed and have their remuneration set by a "general assembly" rather than the institution's board of directors, (International Association of Islamic Banks).

In addition, their duties should include:
- Calculating zakat payable by Islamic financial institutions, (AAOIFI);
- Disposing of non-shariah-compliant income, (AAOIFI);
- Advising on the distribution of income among investors and shareholders, (AAOIFI).

Source: https://en.wikipedia.org/wiki/Islamic_banking_and_finance

The following are commonly utilized practices:

That their SSB members not be employees of the financial institution they supervise. It is the task of the SSB to advise them on whether or not some proposed transactions or products follows the Sharia.
Customary practice is to take the word of clients that they will not use funds for un-Islamic activities and do not deposit funds derived from un-Islamic activities.
Just like it is customary practice for restaurants to accept Halal certified meat from their supplier.
Disposing of non-shariah-compliant income.
Questionable transactions can be disposed of or returned to the customer that deposited it.
Analysis software like Chainalysis can be used for "Know Your Transaction" checking.
KYC can be used to ensure clients are of good standing.

Other exchanges often offer other services like gambling, futures, options, derivatives, Haram tokens / coins and interest bearing crypto would obviously be excluded,

These directly challenge the assertions that you have made.

While I agree that ensuring that "Haram" transactions are avoided altogether would be a near impossible challenge - the same criticism has been made of the entire Islamic banking system.  

Facing a challenging task in my opinion it doesn't make it a fraud.  The person who knowingly certifies their deposited Haram funds as Halal commits an ithm. (unlawful deed (sin) committed intentionally)

It would be like a restaurant buying certified Halal meat where the seller certifies that it is Halal but is lying. The restaurant does not knowingly sell Haraam meat.

وليس عليكم جناح فيما أخطأتم به ولكن ما تعمدت قلوبكم وكان الله غفورا رحيما

And there is no blame upon you for that in which you have erred but [only for] what your hearts intended. And ever is Allah Forgiving and Merciful.

Quran 33:5

[JollyGood]

How do you know that they have no vetting system in place ?

Hello newbie account holder. You seem to know a lot about this subject  

The Adab haraam exchange mouthpiece OP called whitetoo stated it earlier that are happy to accept ICO funding from pimps and prostitutes and they will not vet anybody for the source of their income.

Anyway this whole project is a scam. The exchange is an excuse to steal ICO funds. They might open a low-level "exchange" to show the money is spent then they will siphon it off and close the "exchange" down

[Coinfan]

How do you know that they have no vetting system in place ?

Hello newbie account holder. You seem to know a lot about this subject  

The Adab haraam exchange mouthpiece OP called whitetoo stated it earlier that are happy to accept ICO funding from pimps and prostitutes and they will not vet anybody for the source of their income.

Anyway this whole project is a scam. The exchange is an excuse to steal ICO funds. They might open a low-level "exchange" to show the money is spent then they will siphon it off and close the "exchange" down

Taking in account how much time that newbie lost writing that trashy post, I would say he has a very important interest behind. Didn't the exchange find anyone more credible to post this?

[TycheChi]

How do you know that they have no vetting system in place ?

Hello newbie account holder. You seem to know a lot about this subject  

The Adab haraam exchange mouthpiece OP called whitetoo stated it earlier that are happy to accept ICO funding from pimps and prostitutes and they will not vet anybody for the source of their income.

Anyway this whole project is a scam. The exchange is an excuse to steal ICO funds. They might open a low-level "exchange" to show the money is spent then they will siphon it off and close the "exchange" down

Taking in account how much time that newbie lost writing that trashy post, I would say he has a very important interest behind. Didn't the exchange find anyone more credible to post this?

I know nothing about the Adab Exchange or the people that run it.

Using religious qualifications on business activities in order to promote an enterprise is considered malpractice on most States.

Doing that on abusive terms is a major red flag.

What you are saying is factually incorrect and Islamophobic. I doubt that you are sufficiently knowledgeable in the subject to judge it from a religious perspective. Have you studied the Holy Quran ?

It may well be a scam but what I was reading is a misinterpretation of Sharia. Rather than insulting the religion you could concentrate on presenting facts showing this is a scam.


You are in a greater need of a little manners than a great deal of knowledge. - Ibn al-Mubarak
Manners are a pre-requisite to conveying knowledge because the message may be incredible but if the attitude is incorrect then it'll be of no use.

[JollyGood]

How do you know that they have no vetting system in place ?

Hello newbie account holder. You seem to know a lot about this subject  

The Adab haraam exchange mouthpiece OP called whitetoo stated it earlier that are happy to accept ICO funding from pimps and prostitutes and they will not vet anybody for the source of their income.

Anyway this whole project is a scam. The exchange is an excuse to steal ICO funds. They might open a low-level "exchange" to show the money is spent then they will siphon it off and close the "exchange" down

Taking in account how much time that newbie lost writing that trashy post, I would say he has a very important interest behind. Didn't the exchange find anyone more credible to post this?

A great post by you. Thank you Coinfan for stating what is obvious, it really was a trashy post. The main Adab Haraam exchange has posts from the Kazakh trio living in Uzbekistan stating they will happily accept ICO funding without vetting.

Adab haraam exchange can stoop to any low level just in order to get newbies and gullible investors to send their crypto to participate in a scam ICO.

[whitetoo]

VIDEO MESSAGE from Mufti Faraz Adam:



If it is hard to perceive by ear, then I have an approximate text. You can read:

Shariah Pronouncement – Adab Token
By Mufti Faraz Adam and Mufti Muhammad Abu Bakar

Adab Token is a Utility Token which is based on the ERC20 standard and is subject to automatic executing upon the occurrence of pre-specified conditions. It is structured and based on the following criterion of Shariah and Islamic law.

There are various types of crypto-assets such as coins, equity tokens, utility tokens, commodity tokens etc. The Shariah treatment varies depending on the nature and features of the particular crypto-asset. Since the Adab token is regarded as a utility token, our review focuses on utility tokens. Before delving on the particulars of the Adab token as a utility token, it is imperative to appreciate that tokens qualify as lawful property from an
Islamic commercial law perspective.

There is a difference of opinion among scholars with regard to the definition of Mal (wealth / property). This is primarily due to the Holy Qur’an and the Sunnah of the Prophet (peace be upon him) being silent on the matter. Hence, as per the dictates of Islamic law, Urf or customary practice is considered an important source in determining something as Mal. Scholar have opined that anything which has the following attributes can be considered as Mal:
a) It has commercial value according to customary practice or naturally desirable,
b) It is capable of being stored for the time of necessity,
c) It is capable of being possessed and owned.

In order to use something as Mal, it is also necessary after fulfilling this basic criterion that it should be Mutaqawwim. Mutaqawwim refers to something which is lawful in Shariah and has permissible uses. For instance, alcohol fulfills the basic criterion of Mal, but it is not classified as Mutaqawwim as it is not permissible according to Islamic law.

Taking into consideration this criteria of Mal Mutaqawwim, we are of the view that the Adab token fulfills this criteria. The Adab token has commercial value as each token is backed by permissible services and products offered on Islamic Cryptocurrency Exchange. Further, these tokens can be possessed through digital wallets. The Adab token is Mutaqawwim as it provides access to only Shariah complaint
services and products.

Since the Adab token is a utility token, it is of benefitto discuss utility tokens. Utility tokens are crypto-assets which derive their value from future utility. Such tokens are commonly used to raise funds for a particular project. The tokens promise certain benefits, services or rights to token holders. The Adab token functions as a utility token. It will be issued through an ICO to raise funds for the development and scaling of the Islamic Crypto Exchange. The token will be the property of its owner (token-holder) and hence token holders will be entitled to get access to the products and services of the Islamic Crypto Exchange.

Underlying Platform:

The Adab tokens give access to permissible services and products on Islamic Cryptocurrency Exchange (FICE). The proposed structure of Islamic Cryptocurrency Exchange does not allow any Shariah non-compliant securities to be traded such as conventional bonds, derivatives etc. Likewise, any Shariah non-compliant investment strategy or contract such as short-selling, margin trading and roll-over etc are also strictly profited on the platform. To ensure Shariah compliance of each facility on Adab FICE, there will be an ongoing review and audit of Adab by Shariah Supervisory Board in conjunction with the Internal Shariah Compliance Officer, Mufti Faraz Adam.

To best of our knowledge on the basis of above justification, we are of the view that participation in Adab ICO and its secondary trading is permissible.

Allah (swt) knows best.

Mufti Faraz Adam and Mufti Muhammad Abu Bakar

Shariah Advisors at Adab Solutions

[Coinfan]

Many advertising regulations explicitly ban exploiting religious symbols or claims with commercial goals:

For instance, check the Irish Advertising Code:
https://www.asai.ie/asai-code/general-rules/
2.18
(e) not (...) exploit religious beliefs, symbols, rites or practices.

Even Microsoft on their code:
https://advertise.bingads.microsoft.com/en-us/resources/policies/disallowed-content-policies#
"Advertising cannot exploit sensitive political or religious issues for commercial gain"

But this is an implicit rule on most Codes.

Of course, this is the rule even if the claim is true.

In this case, the claim can't be true and that makes it completely misleading and a clear red flag.

A crypto exchange claiming to be Shariah compliant is as fake as a bank accepting deposits with bags full of cash claiming the same.

You just can't control the real source of the money.

[JollyGood]

Many advertising regulations explicitly ban exploiting religious symbols or claims with commercial goals:

For instance, check the Irish Advertising Code:
https://www.asai.ie/asai-code/general-rules/
2.18
(e) not (...) exploit religious beliefs, symbols, rites or practices.

Even Microsoft on their code:
https://advertise.bingads.microsoft.com/en-us/resources/policies/disallowed-content-policies#
"Advertising cannot exploit sensitive political or religious issues for commercial gain"

But this is an implicit rule on most Codes.

Of course, this is the rule even if the claim is true.

In this case, the claim can't be true and that makes it completely misleading and a clear red flag.

A crypto exchange claiming to be Shariah compliant is as fake as a bank accepting deposits with bags full of cash claiming the same.

You just can't control the real source of the money.

You make some excellent points and valid arguments.

The scammer whitetoo is trying to say that a scam project that has been set up with the sole purpose to steal ICO funds is somehow religious. Anyway whitetoo scammer has been permanently banned from this forum but that was just one sock-puppet user account from a list of many: https://bitcointalk.org/index.php?topic=5077842.0

[JollyGood]

MAJOR SCAM WARNING !!



The "pre-sales" ICO has been extended twice.

They offered 150% discount at one point and have been giving 40% discount until February.

Their "pre-sales" ICO will run for 6 months between August 2018 and February 2019.

Their "ICO" will run from February 2019 to August 2019.

Their ICO will last for 12 months. The longest ICO in history  

This has been exposed many people on their thread as a scam.



ADAB HARAAM EXCHANGE = SCAM !!

[FaucetKING]

Your points are really fine and countable. I found that exchanger ICO here in Btalk and tried to look at its bounty program/the team and etc..
What i found is typically what you just stated in your thread. These peoples are non muslims, if somebody want to do so, they have to be muslim right? I dunno but i've found that they bring some peoples to just Showoff that they are muslims but in full, the project has nothing to do with Islam.
I've heard a while ago about some Muftis agreeing that BTC Trading in full is HARAM, wtf are these ADAB TEAM doing?
I think that a business here is a business, they only care about money and not really providing a full product, they are playing with "religion'' as a good point to use in order to gain more and more users.
Finally, they did the project just to make more arabs use their platform, i don't think so, most of the arabs are using binance and will never use a platform using ISLAM as a key to grab a reputation and grab more users..
Their project is good enough in the technical side, the ethical side is missing alot.

[JollyGood]

Your points are really fine and countable. I found that exchanger ICO here in Btalk and tried to look at its bounty program/the team and etc..
What i found is typically what you just stated in your thread. These peoples are non muslims, if somebody want to do so, they have to be muslim right? I dunno but i've found that they bring some peoples to just Showoff that they are muslims but in full, the project has nothing to do with Islam.
I've heard a while ago about some Muftis agreeing that BTC Trading in full is HARAM, wtf are these ADAB TEAM doing?
I think that a business here is a business, they only care about money and not really providing a full product, they are playing with "religion'' as a good point to use in order to gain more and more users.
Finally, they did the project just to make more arabs use their platform, i don't think so, most of the arabs are using binance and will never use a platform using ISLAM as a key to grab a reputation and grab more users..
Their project is good enough in the technical side, the ethical side is missing alot.

I disagree because their MVP is an absolute disgrace, I see nothing positive in their technical side. The Kazakh owners are scammers, they are running a 6 month pre-sales ICO between August 2018 to February 2019 and then the remainder ICO from February 2019 to August 2019 - that is 1 whole year just for an ICO.

Ethically they proved they are fools by colluding with a Russian/Ukrainian sock-puppet operator to pump their scam ICO thread and by claiming to be a religious organisation but also clearly stating in their thread they do not care if ICO funding sources come from prostitution, drugs and other illicit manners.

They are trying to take a slice of the Arab/Muslim crypto market by claiming their practices will be "Shariah" but they are scammers, modern day thieves and liars. They are nothing else except low-life scammers who would sell their own soul for a quick buck.

[Coinfan]

The fact that the main promoter of this exchange was permanently banned by bitcointalk administrators seems clear confirmation that this exchange is a scam.

The profile of banned members should state that they were banned, but he hasn't login since 12 December https://bitcointalk.org/index.php?action=profile;u=90601 and all his posts after 1 December were removed:
https://bitcointalk.org/index.php?action=profile;u=90601;sa=showPosts

[intico2020]

To answer your question I can safely say I am no expert on Shariah either but have learned enough to prove the Adab Exchange are scammers.

"Profiteering" itself falls under the ruling of business which is to buy/sell tangible items and products to make profit so it is definitely permissible, however charging your customers any form of interest or usury is completely and strictly forbidden. The idea of long or short term trading (buying/selling) on stocks is not universally accepted as permissible. Some scholars have said it is allowed and some have said it is forbidden.

When it comes to declaring something such as this Adab Exchange as being Halal or Shariah compliant when it cannot be is just not on.

The funds to sell ICO tokens might be or could be coming from illegal and immoral earnings such as

pimps
prostitutes
porn actors
those currently behind bars in prison serving prison sentences
those that sell drugs/narcotics
those that manufacture, test and sell weapons
those that own publications online/print media cursing Muslims and those that have anti-Muslim agenda
those that own, transport or sells alcohol

If the Adab exchange scammers are willing to accept investment from pimps, prostitutes, porn actors, those currently behind bars in prison serving prison sentences, those that sell drugs/narcotics, those that manufacture, test and sell weapons, those that own publications online/print media cursing Muslims and those that have anti-Muslim agenda and those that own, transport or sells alcohol as well as those that promote, participate or propagate to suppress Muslims then the exchange cannot be called "Shariah" exchange.

Simple, this project is a scam.

i'm also not expert in sharia law, but:
- this is exchange project, they give you service, exchange site (marketplace) service. and they charging fee, not interest. fee is permissible
- short or long trading depends on exchange users, it's their responsibility to do halal/haram trading. this exchange just want to provide "sharia compliant" exchange
- ICO is one thing and exchange (its product) is another thing. and how u can judge ppl a thief, or "this money acquired in haram way" in this blockchain world? but even if we know "she is porn star", u still can accept her investment, although better to refrain. https://islamqa.info/en/126486
- islam not seeing non believers as ppls who need to be avoided


i'm not adab team, i just want to give my opinion

I respond well, the opinions you convey

[Little Mouse]

They might call it based on Islamic Shariah. But conducting a business based on Islamic Shariah is beyond possible. There is no mean of such kind of exchange too because you are here to buy/sell and make profit. What will be some extra option there which made them Shariah based?
Definitely a scam project.

[JollyGood]

The fact that the main promoter of this exchange was permanently banned by bitcointalk administrators seems clear confirmation that this exchange is a scam.

The profile of banned members should state that they were banned, but he hasn't login since 12 December https://bitcointalk.org/index.php?action=profile;u=90601 and all his posts after 1 December were removed:
https://bitcointalk.org/index.php?action=profile;u=90601;sa=showPosts

Thank you for your input.

Yes the OP of their main thread was banned but he was an alt-name multi-user of a much bigger group that are part of the Adab Haraam Exchange.

They are a bunch of scammers.

To run a "pre-sales" ICO for 7 months between August 2018 - March 2019 and then to run a 6 month ICO from March 2019 - September 2019 is a pathetic scam.

Making a 13 month ICO with all the excuses they made up is blatant scam. They have no knowledge or background in this field but jumped in on the religious bandwagon.

[Coinfan]

Their lies about their "islamic nature" is a very low tactic to explore religious beliefs.

What are they going to say next? Do like the catholic church on the XV and XVI centuries and say that who wastes money on their ICO will go to heaven?