Another scam-ICO robbed $2 mln worth of cryptocurrency

ICO project called Giza turned out to be a scam after almost a month of drawing in the investors
12 March 2018   1459

A startup called Giza allegedly was supposed to develop a secure storage device to act as a digital currency vault. It resulted to be a fraudulent ICO project, as CNBC reported today. An individual or a group of ones behind the scam created a fake LinkedIn account with stolen photos of a complete stranger from Instagram and drew more than 1000 investors over the course of January through February. The central figure in the project - a mysterious COO of Giza Marco Fike: he was recruiting employees at freelancer-oriented job hunting websites, conducted chat interviews on Telegram and Skype (never voice or video), and managed business connections.

Late last year Giza contracted a Russian manufacturer Third Pin LLC that dealt with hi-tech devices. Giza representative provided initial designs, the project was sketched and the price was announced. But after several vague discussions on the matter of the details of the deal (how many units are considered, what specific characteristics should the device have, etc) the CEO of Third Pin, Ivan Larionov cut off the deal suspecting the project is a fraud. Mr. Larionov then posted at a Bitcoin forum explaining the fallout. These 2 facts eventually resulted in the project's compromise.

At the beginning of February Giza raised over 2100 ethereum tokens (~ $2.4 mln). Around mid-February huge discharge of Ether was spotted, it continued for 2 weeks until March, 2. A parallel is considered between Giza and another scam against a digital currency Bee Token: in February, Bee Token conducted an ICO but scammers inserted themselves into the cryptocurrency flow. And one of the wallets associated with Bee Token phishing attempt actually sent money to a wallet associated with Giza.

Giza investors have no clue of how to get their money back, and some have already contacted law enforcement authorities in the UK.

AION to Unveil Future Plans

Foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year
06 December 2018   165

The Aion Foundation, which is responsible for the development of the protocol of the same name and collected $ 23 million in Bitcoin and Ethereum on ICO in October last year, published a report in which it shared information about its financial operations. The report was prepared with the support of Deloitte, however, it cannot formally be considered an audit.

According to the Aion Foundation CEO Matthew Spoke, the foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year. Having spent $ 10 million on launching its blockchain platform and opening offices in Canada, China and Barbados, the fund had assets of $ 14 million as of October 31 of this year, $ 5.8 million of which was placed in Fiat.

We’ve liquidated a decent amount of our bitcoin and eth that we raised as proceeds to make sure that we are stable in this type of period. As we continue to spend in our operations we’ll end up liquidating more bitcoin and eth over the course of the next few months.
 

Matt Spoke

CEO, Aion Foundation

The Aion protocol has already attracted active users, including the video game start-up ClanPlay, but Spoke claims that his company will continue to rely on hard currency.

The foundation has roughly 18 months of runway, Spock estimates, while developing his system to a level at which it can compete with centralized counterparts, such as Amazon Web Services, will take about five years. Aion expects to launch its first Java-based virtual  machine, thanks to which developers can use decentralized tools, by the second quarter of next year.

Spoke suggests that at this time his company will have to attract additional funding from cryptocurrency funds and accredited investors in exchange for their own tokens. His goal is to prevent the reduction of the team, which currently includes 61 people, and the operation of the Ethereum model of ConsenSys, a company sponsoring projects in its own ecosystem.

In the future, Aion intends to publish such reports on a quarterly basis and transfer data to the Messari network in order to increase the confidence of its tokens holders.