Surprise! Hundreds of ICOs are probably scams
We already knew that the marketplace for initial coin offerings is a magnet for bad actors. Now we have some data to help quantify the problem, thanks to an investigation by the Wall Street Journal. (What the hell is an ICO? ←Here’s a primer.)
Hallmarks of fraud: The newspaper reviewed documents from 1,450 ICOs, finding that 271 raise “red flags,” including plagiarized investor documents, promises of guaranteed returns, and fake executive teams. Investors have paid more than $1 billion into these projects, some of which are still running.
The reckoning: The lawsuits and government crackdowns are just beginning. Investors have claimed up to $273 million in losses from these projects, and the US Securities and Exchange Commission has filed charges against several ICOs on allegations of defrauding investors.
Desperate measures: The SEC is also using unconventional methods to attack the problem. This week it launched a website that appears to be hawking a digital coin but actually sends those who click “Buy now” to an informational site about ICO scams.
Keep up with the fast-moving and sometimes baffling world of cryptocurrencies and blockchains with our twice-weekly newsletter Chain Letter. Subscribe here. It’s free!
Keep Reading
Most Popular
A Roomba recorded a woman on the toilet. How did screenshots end up on Facebook?
Robot vacuum companies say your images are safe, but a sprawling global supply chain for data from our devices creates risk.
A startup says it’s begun releasing particles into the atmosphere, in an effort to tweak the climate
Make Sunsets is already attempting to earn revenue for geoengineering, a move likely to provoke widespread criticism.
10 Breakthrough Technologies 2023
These exclusive satellite images show that Saudi Arabia’s sci-fi megacity is well underway
Weirdly, any recent work on The Line doesn’t show up on Google Maps. But we got the images anyway.
Stay connected
Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.