The team behind a Vietnamese company, Modern Tech, has pulled an ICO exit scam after raising $660 million in an Initial Coin Offering (ICO). About 32,000 victims had invested in the platform’s Pincoin token.
The company’s ICO sold the platform’s Pincoin token with the promise of consistent returns for investors and then launched a second token, iFan. Though the investors initially received cash payouts for their investments, after a while the team started making payments in iFan tokens.
The seven person team made up of Vietnamese nationals then disappeared pulling off what might be the largest ICO exit scam in history.
A report from Tuoi Tre news says:
“In fact, the real mastermind behind these projects is a team of seven Vietnamese nationals, who have held different conferences in Hanoi, Ho Chi Minh City and even remote areas to lure investors.
Investors have been told that they would enjoy a profit rate of 48 percent a month from their initial investment, and recoup all investments after four months. People would also be rewarded with an eight percent commission for every new member they have introduced to the network.”
Same Script, Different Cast
This is a familiar multi-level marketing scheme tactic that involves paying existing members bonuses based on the number of new people they recruit into the program.
The Pincoin website which is still live as at press time explains the principle behind the project:
“The PIN project is about building an online collaborative consumption platform for global community, base (sic) on principles of Sharing Economy, Blockchain Technology and Crypto Currency.”
The Pincoin whitepaper does not make any mention of project founders or give any information on the team members.
The victims of the ICO exit scam have turned to social media to lament their losses while others assembled outside the company headquarters on Sunday with signs condemning the fraudulent move.