Cryptocurrency exchange KuCoin announced that it will reimburse users who have invested in ICO Confido with their platform.
After collecting 347 000 dollars a team of developers Confido announced that the practical implementation of the project impossible within the framework of the ICO results. It was therefore decided to stop its development. This fact has led many to think about Confido how about the bench project.
KuCoin, after a series of unsuccessful attempts to contact the project team Confido, decided to pay 0.0000038 BTC (about 3.5 cents) for each token of the controversial startup to all its customers who have positive balances in CFD.
Startup Confido – just one of examples of Scam faced by the ICO market due to the lack of regulations governing this sector. Most ICO fall under the regulatory rules in respect of the securities, but some try to Dodge any responsibility.
The absence of effective regulation and the incredible popularity of the cryptocurrency and the ICO is likely to lead to frequent cases of Scam in this field. However, regulatory authorities do not lose vigilance. The European authority for securities and markets (ESMA) focuses on the fact that ICO can disregard the law. In addition, the U.S. Commission on securities and exchange Commission (SEC) in September announced the creation of a new “Cyber Unit” . This group has broad powers, including oversight related to ICO.
There were even rumors that Confido themselves unable to return funds to investors. The announcement was published on the website of the project on behalf of the law firm Jonkers & Van Gemert. The appeal says that the project is Confido is not fraudulent, and most of the investment is kept in a trust Fund. Anyway, while the startup will not reimburse funds to its investors, they can rightfully be considered a fraudulent project.