Do scam ICOs really taken to the court?

[LogitechMouse]

There are many scam ICO's that have been taken in the court but because of lack of regulations of crypto, most of them aren't punished.

Bitconnect is one of the worst scam that ever happened to crypto (I disregarded Mt. Gox because it is not scam but it is bankruptcy) but the creators of this coin are now freely doing whatever they want - in short they didn't receive any punishments. Some scam famous ICO scams are Envion and Centra. There are some but it is not a popular one.

[anjiitem]

I saw some of the scam busters in the forum talking about taking the case to the court on scam ICOs, my question is, is it really happening.

Can you give me scam ICO that was already taken to the court and teams are being punished?
I know about Centra.. so give me others.

There are ICO's and scam projects that are prosecuted but their number is very small compared to the number of scammers and those who run away with money, one of the reason is, the distance if you are investor from Asia and you invested in a project that is based on Europe you will have to travel and spend your money, and you need more funds to file charges.

That's the hard thing to do if you want to sue, you have to have strong evidence, even if you are a investor with millions of dollars, then I think it needs to be tapped out, even though the cost is very expensive too, but on average now a small investor by a deceptive ICO project becomes difficult too. to sue because it is constrained by costs.
Scamer is currently still on the prowl and difficult to judge because it is difficult to access.

It does require a large enough cost to do so, but for investors who invest in millions of dollars I think they will file a claim against what they have gotten and will report it and try to find evidence they have. But it is indeed difficult to access scammers because some also use false information and not information about themselves so it will be difficult to track these people.

[kaya11]

I think only big scam projects are taken to court if its small time projects scammers can easily fly away and thats sad reality. Will never know but its up those victim’s on where they will bring their complaints and charges to bad actors up to what level but maybe some of them just gave up chasing justice.

I hope it could be changed. The way the justice system in the crypto space is just so lame. Most ICO projects have slipped from the shackles of the court. If only this could be solved, I think investors will have more assurance and will feel safe, also they could lead to investing more and projects leading in a successful state.

[thesmallgod]

it depends on some factors such as the countries and also maybe the business is legally registered. If you check very well, you will see that most ICO that eventually turn to the scam are not legally registered in the country it claims to be operating from and many of them are not from country like Canada, UK, Australia, and other related countries

[Gotumoot]

Many of the investors who have been victims of scam ICO campaigns have lost their investment because the ico don't have any identity. And even if they report it to the SEC overseas they probably won't do it as well because they have no lead. especially other scam ICOs that fake the registry in sec, so be careful and if you are not sure of the investment to be entered then do not proceed to prevent victimization.

[duuuuude]

In many courts, it is very difficult to consider such cases. There are such countries, for example, Russia where cryptocurrency does not appear in the legal field at all and it is very difficult to initiate a criminal case and bring to justice under any article.

[Obito]

There are many scam ICO's that have been taken in the court but because of lack of regulations of crypto, most of them aren't punished.

Bitconnect is one of the worst scam that ever happened to crypto (I disregarded Mt. Gox because it is not scam but it is bankruptcy) but the creators of this coin are now freely doing whatever they want - in short they didn't receive any punishments. Some scam famous ICO scams are Envion and Centra. There are some but it is not a popular one.

It is sad to know that they are on the edge of receiving the punishment accordingly but been prevented by lack of regulations thus they could escape from it away. The real case isn't about the scam project but the concrete law that needs to exist in order for this frauds be lessen, at least. Because they knew what nightmare are waiting for them ahead.

[gweedo]

I saw some of the scam busters in the forum talking about taking the case to the court on scam ICOs, my question is, is it really happening.

Can you give me scam ICO that was already taken to the court and teams are being punished?
I know about Centra.. so give me others.

Bitcoinect is one of the projects I know. This is the largest scam project in this market and it caused a lot of investors to lose money in the period 2017-2018. And of course they were punished by the laws of the relevant governments. There are still a lot of scam projects in this market and they haven't been brought to court yet, I hope they will one day be legally responsible and we will have some new laws for ICOs and IEO

[isaac_clarke22]

Yes. This is one that I just recently read as I tread into the history of ICOs.
First here's the link to what I'd read: https://cryptovest.com/news/celebrity-ico-endorsers-taken-to-court-over-alleged-crypto-scam/
I guess there are even celebrities that even support ICOs in crypto (DJ Khaled and Floyd Mayweather mentioned in the article). It is just saddening that investors were also being deceived by these popular celebs.

[Ferris419]

Some scam ICO projects like Centra, Envion, Plex and of course Bitconnect that raised huge money got the punishment, but that wasn't enough! Most of the scam ICO hasn't gotten any kind of sentences from anywhere! They came, took people's money and no one knows them, totally vanished! I strongly believe these scam ICO ruined the popular sale system in the crypto industry!

[Google+]

In many courts, it is very difficult to consider such cases. There are such countries, for example, Russia where cryptocurrency does not appear in the legal field at all and it is very difficult to initiate a criminal case and bring to justice under any article.

I think it is not only the Russian state that prohibits the circulation of cryptocurrency and scamer not only from that country, many countries have legalized to conduct transactions using cryptocurrency but there are still many who do scam, so the legality of cryptocurrency does not provide guarantees to avoid thieves under the guise of ICO or IEO.

[Wysi]

Only those who were involved in major scams have been referred to court but still most of the mid level scam projects get away easily as they remain anonymous and hires the entire team through proxies wherein the the management team will be hired on token basis but the culprits will not reveal their identity. I had been approached for something similar in the past.

[Mahanton]

I saw some of the scam busters in the forum talking about taking the case to the court on scam ICOs, my question is, is it really happening.

Can you give me scam ICO that was already taken to the court and teams are being punished?
I know about Centra.. so give me others.

Im not already aware on what happened to those scams that had been bust up and have been taken to the court yet i read up that there were files and  legal complaints but i do lost track because when ICO market turns out to be shitty i decided not to look back but im pretty aware with that Centra scam which Mayweather is been tagged up with that one.

[crwth]

Some cases have been to court and about cryptocurrencies as well. The most recent one I found is about Telegram with its ICO.

https://cointelegraph.com/news/court-denies-sec-request-to-make-telegram-reveal-ico-bank-records

It's about the SEC requesting the bank records of Telegram for regulatory purposes and making sure that Telegram has abided to the data privacy laws, both foreign and local privacy laws.


As long as the ICO is a fraud, I think it is being taken into court, especially if there are a lot of affected people.

In the last link below, there's a table where SEC-Crypto cases are listed. Maybe you guys would find it interesting too.


Some researched links with ICO and court:

https://financefeeds.com/maksim-zaslavskiy-gets-18-month-prison-sentence-ico-fraud/
https://financefeeds.com/sec-reveals-details-plexcoin-ico-scam/
https://qz.com/1720295/after-4b-ico-block-ones-24m-sec-settlement-lets-it-keep-building/

[elisabetheva]

Many of the investors who have been victims of scam ICO campaigns have lost their investment because the ico don't have any identity. And even if they report it to the SEC overseas they probably won't do it as well because they have no lead. especially other scam ICOs that fake the registry in sec, so be careful and if you are not sure of the investment to be entered then do not proceed to prevent victimization.

Form of fraud prevention is the main thing that actually has to be done, because there are still many laws in several countries for crypto not yet available. so experiencing problems can not report fraud ico, because the law is not yet available. maybe in a developed country it might be possible, but are they also registered and recognized and the company is clear. this is also a separate obstacle, correct as colleagues above, prevention is the main thing.

[Coltpython]

If the scam originated from the USA then it is easier to pursue with court cases I think. But if it is outside the USA, I don't think it is that easy as laws are different slightly in other countries.

[letyouearn]

I bet these cases are vanishingly rare, most people just like to talk about scams and punishment and nobody is trying to do something valuable. And the task is really difficult sometimes, crypto market is like a wild west

[redsun114]

Many of the investors who have been victims of scam ICO campaigns have lost their investment because the ico don't have any identity. And even if they report it to the SEC overseas they probably won't do it as well because they have no lead. especially other scam ICOs that fake the registry in sec, so be careful and if you are not sure of the investment to be entered then do not proceed to prevent victimization.

Form of fraud prevention is the main thing that actually has to be done, because there are still many laws in several countries for crypto not yet available. so experiencing problems can not report fraud ico, because the law is not yet available. maybe in a developed country it might be possible, but are they also registered and recognized and the company is clear. this is also a separate obstacle, correct as colleagues above, prevention is the main thing.

Yes this is the main issue faced by most of the countries. There are rarely any laws implemented to the decentralized networks and the cryptocurrencies which has made it difficult for the peoples to file a case against such projects. Also another important phenomenon is that the majority of scam ICO's use fake identity which might perhaps make it impossible to ever catch them.

Additionally, they do raise the funds onto some cryptocurrency addresses which are never an easy task to track down so it might keep them anonymous. The most advanced step taken against such projects would be busting them but yet catching the owner of that project would be most difficult task.

[Republikcoin.com]

I bet these cases are vanishingly rare, most people just like to talk about scams and punishment and nobody is trying to do something valuable. And the task is really difficult sometimes, crypto market is like a wild west

even though they tried to bring it to court, it seemed like it also required huge funds. I think that things like this can be brought to justice when it is quite clear who the team behind this is, and whereabouts are known. otherwise, it will certainly require a large fee. This is also done by large investors.

[arimamib]

I bet these cases are vanishingly rare, most people just like to talk about scams and punishment and nobody is trying to do something valuable. And the task is really difficult sometimes, crypto market is like a wild west

sometimes fraud cases as far as I know are only reported and for court issues it will be difficult to realize because most fraud is done anonymously. and for any report I think it will be difficult to make a detailed report because in the litigation it requires data to reinforce the mistakes made by fraudsters.