Benebit ICO Alleged to be a Scam

According to calculations, Benebit was able to steal from $2.7M to $4M
24 January 2018   1000

Organizers of ICO Benebit, which had positive ratings and significant support from the community, allegedly fled with investors' money. According to the calculation, the cybercriminals stole from $ 2.7 million to  $ 4 million.

The fact that Benebit is not that clear became known when someone found that the photos of the members of the project team were taken from the site of the British school for boys. As Bitcoin. com notes, this case could be the largest scam of its kind in history.

Benebit Team
Benebit "Team"

It was assumed that Benebit will develop a platform to increase customer loyalty. The startup secured broad public support, collecting 9,000 subscribers in Telegram and receiving positive ratings on the ICO review sites.

And on January 22, Benebit ceased to exist: its website and most of the accounts in social networks were deleted. Only Telegram group remained, in which investors continue to share their experiences.

In general, Benebit created a positive impression: the activity in his Twitter was supported for more than a year, which allowed him to collect a significant number of followers.

The saved version of the website allows you to get a general idea of the proposed product. Words "decentralized", "global system", "blockchain", "revolutionary network", etc. were used on it. One of the reasons that made users think that they have a full-fledged project before them are the amounts that the team spent on marketing. It is assumed that Benebit spent up to $ 500,000 on the advertising campaign.

Early investors have already invested their money in Benebit by the time users suspected something was wrong.

CO Watchlist, also evaluating the ICO, wrote: "Benebit was a Junior listed project on our platform and it has been pulled down since this report got to us. Our hearts go out to those who might have lost their funds to this project. As we consistently remind people, ICOs are high risk ventures and it is imperative that investors do their own due diligence before making commitments"

ICO Bench also included Benebit in its listing, and users gave it a rating of 4.1 out of 5.

Benebit Telegram
Benebit Telegram

According to the administrator of the Telegram-channel Benebit , the real organizers of the ICO are in India. He claims that he was deceived just like everyone else.

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Singapore's Watchdog to Warn Crypto Exchanges and ICOs

MAS says it has cautioned the exchanges to seek authorization if trading digital tokens that are regulated under the Securities and Futures Act 
24 May 2018   43

The Monetary Authority of Singapore (MAS), which performs functions of country's central bank, warned eight local crypto exchanges about the inadmissibility of futures contracts trading and digital tokens with the properties of securities without proper authorization from the regulator. This is reported on the Coindesk.

MAS representatives note that if the tokens traded on Singapore exchanges have properties that allow them to be classified as assets subject to the Securities and Futures Act (SFA), the trade in such coins must be immediately terminated before the regulator is given permission to operate as a authorized financial market operator.

If the digital tokens constitute securities or futures contracts, the exchanges must immediately cease the trading of such digital tokens until they have been authorised as an approved exchange or recognised market operator by MAS.
 

Monetary Authority of Singapore

In addition, local organizers of initial coin offerings (ICO) have also been warned about the inadmissibility of raising funds in Singapore. According to the regulator, ICO-tokens are equity instruments in the assets of companies, and therefore fall within the scope of SFA.

If any digital token exchange, issuer or intermediary  breaches our securities laws, MAS will take firm action. The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS' rules.
 

Lee Boon Ngiap

Assistant managing director, MAS

According to representatives of MAS, not only issuers of ICO-tokens, but also other platforms that are intermediaries in the exchange of such assets and contribute to their dissemination, can bear responsibility.