China has discovered more than 420 fake cryptocurrency

China has discovered more than 420 fake cryptocurrency

The national Council of experts on technology of financial security on the Internet (IFCERT) published a report on fake cryptocurrency. As of April, the Department found 421 fake cryptocurrency, 60% of which are “based” abroad. The Committee also announced three main features of such cryptocurrencies.

Referring to the fact that in recent years, virtual currencies such as Bitcoin , litecoin, ethereum, etc, are constantly under scrutiny, IFCERT noted that “some criminals engaged in financial fraud or pyramid schemes under the guise of virtual currency”.

Analytical platform IFCERT constantly monitors fake cryptocurrency, the Committee said in this regard:

The report shows that as of April 2018 IFCERT found 421 fake cryptocurrency, of which more than 60% of servers are fake coins are outside of the country. On this basis they are difficult to detect and track.

The Council has also set out the three major signs of fakes. First, they use “business model of a financial pyramid”, arguing that their cryptocurrency will generate high returns.

Second, they have no real code, as noted IFCERT, they have no blockchain, or they do not generate blocks.

Thirdly, they will not be traded on a licensed cryptocurrency exchanges, “so they’re often traded in OTC or private exchange,” — said in a detailed report, which also said:

Prices [on these platforms] are controlled by institutions or individuals, which usually causes the illusion of rapidly rising prices. However, users are often unable to make transactions or withdraw Fiat.

IFCERT stressed that fake cryptocurrency have no value and are illegal, so it will be difficult to offset any losses for victims.

On Thursday, the Wall Street Journal published their conclusion after a review of documents 1450 ICO. Edition “found 271 fraudulent project that provided plaatsje documents investors with promises of guaranteed returns and a description of the non-existent team.”

Investors have invested in these 271 ICO more than $ 1 billion, some of the companies are still collecting funds, and other closed. At the moment, investors reported lost in these projects to 273 million dollars. The U.S. , according to lawsuits and regulations.

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