$69M Crypto Scam Busted in Japan

According to law enforcement agencies, about 6,000 people participated in the project called Sener, that turned to be a financial pyramid
15 November 2018   300

Tokyo police have arrested eight people who are suspected of creating a cryptocurrency financial pyramid called Sener. According to the Asahi Shimbun, the organizers raised $ 69 million (7.8 billion yen).

It follows From the police reports that the company is not registered with the Financial Services Agency of Japan. In October, 73 people filed for Sener with a claim for damages amounting to $ 3.3 million (370 million yen). According to law enforcement agencies, about 6,000 people participated in the project. Six suspects have already pleaded guilty, two deny.

Also, according to a police report, Sener has invested in cryptocurrency. The organizers promised from 3% to 20% of profits every month, and if investors bring in new participants, the payout percentage will increase.

The company conducted seminars with the involvement of foreign speakers, which were posted on YouTube.

ICOs to Lose Popularity, Diar Research Say

Diar assumes that in the future unregulated ICOs won't attract significant attention
11 December 2018   6

Although since the beginning of this year, ICO-startups have managed to raise over $ 12.2 billion, the November figure was only $ 65 million, according to data from a new study of the Diar portal.

According to analysts, the once popular method of financing, which allowed startups to attract tens and hundreds of millions of dollars in the absence of any product, exhausted itself against the background of fears about regulators' actions and the general dynamics of the cryptocurrency market, which did not leave retail investors with anything except for an unpleasant aftertaste.

This version is also supported by the data from the TokenData portal, which Diar leads in his research. Even with respect to the October levels, which constituted only a small fraction of what could be collected a few months ago, the November figures were 3 times lower.

Diar assumes that in the future unregulated ICOs as we have known them over the past years will no longer attract significant attention and will give way to regulated platforms of tokenized securities.