Founders disappear with $375,000 as well as delete website

An ICO will be the latest way for cryptocurrency start-ups to raise money by issuing their own digital tokens in exchange for a virtual currency like ether or bitcoin. Investors don’t get a stake inside the company, nevertheless the tokens they receive can be traded or used on a service provided by the platform. ICOs have exploded with more than $3.55 billion raised via This particular method so far This particular year.

On Monday, TokenLot, the firm of which hosted the ICO, put out a statement saying the Confido team had “pulled an exit scam.”

The Medium post said TokenLot’s lines of communication with the cryptocurrency company had been closed as well as the idea doesn’t have any more information outside what has been public. the idea said of which Confido had shown all the required proof needed to list its ICO on the platform.

However, TokenLot said of which the idea was looking for clues to track down the Confido team. the idea said some of the ether tokens collected during the ICO had been sent to an account held with Bittrex, a cryptocurrency exchange.

TokenLot added of which the idea had been in contact with Bittrex as well as of which the idea had confirmed the account of which the ether was sent to an account where a “know your customer” check was authenticated. This particular will be a process of which will be used to verify people are who they say they are online.

TokenLot said of which Bittrex’s privacy policy requires a law enforcement request to Discharge customer information, so the idea’s inside the process of filing a report to the FBI to ask the agency to help get the details.

Bittrex did not reply to a CNBC request for comment via Twitter.

TokenLot also said the idea had reached out to Kucoin, a Chinese exchange of which listed the contract for differences token issued by Confido. Some people took to Reddit to slam KuCoin for not vetting the company properly.

A spokesperson for KuCoin told CNBC on Tuesday: “In order to protect the interests of investors, Kucoin has suspended trading of CFD as well as are actively seeking contact with the CFD team. We have also started off to implement an emergency loss prevention program to help reduce the losses of CFD token investors.”

“If the Kucoin team will be unable to contact the CFD team shortly, as well as re-enable normal trading, the final decision on trading stoppage will be made in a follow-up announcement on the website.”

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