Enigma refunds investors after $500k scam [UPDATED]

After $500,000 scam attack in August, Enigma reimburses the investors affected 
26 October 2017   2173

What happened 

A hacker managed to compromise Enigma project before its ICO netting over 1,500 Ether (over $500,000) from the community.

On August 24th, Guy Zyskind, co-founder and CEO of Enigma, makes an announcement to address growing concerns over the hack that resulted in investors being scammed.

Firstly, the man highlights Enigma's gratitude for the support from the community. However, as Zyskind notes, "there’s nothing worse than having people who join our ranks ... fall victim to a malicious act". 

So we are taking responsibility. ... We will restore funds to everyone that lost money in this recent scam attempt after our token sale concludes. We’ve already been in direct contact with some of the affected parties. 

Guy Zyskind
Co-founder and CEO of Enigma

Thus, Enigma's CEO encourages everyone who lost funds to reach out to the company with information about themselves and their transactions. 

As far as Enigma's future plans are concerned, Guy Zyskind mentions that the team is to   live-stream their token sale on September 11th in order to remove any doubt about information shared during the token sale.

The present day

Now, on October 24, the project finally reports that the victim recompensation and sale refunding is complete.

As reported, Enigma is continuing to work with those victims who have not yet provided wallet ownership confirmation. The company has already reached out to all those who have submitted a report, and the final deadline for wallet confirmations is the end of the week (October 27th).

In addition, all ETH/BTC refunds from overcontributions during the token sale have been distributed

Conducting a safe and efficient token sale is often a difficult and complex process, and we know there were many elements of the ENG sale process that could have been improved. With the sale now finalized, we continue to reflect on the challenges of our token sale and look ahead to building our protocol, our product and our business successfully.

The Enigma Team

The team also stresses that Enigma is dedicated to transparency, honest communication, and execution, and it will continue to demonstrate this commitment and maintain the users trust. 

SEC to oblige AriseBank to Pay $2.7M

In November, FBI agents arrested project's founder Jared Rice
13 December 2018   88

The US Securities and Exchange Commission (SEC) ordered the founders of the AriseBank cryptocurrency project, Jared Rice and Stanley Ford, to pay about $ 2.7 million as part of the settlement of fraud charges. It is reported by CoinDesk.

The founders of the project accused of fraud must pay about $ 2.3 million to return the illegally obtained profits, and $ 68,423 as compensation for the percentage of the pre-trial costs. Jared Rice and Stanley Ford are also required to pay $ 187,767 each as a fine.

In addition, they agreed to a lifelong suspension from management positions in public companies and from participation in the distribution of securities. Jared Rice and Stanley Ford did not reject their guilt, but did not agree with the accusation.

In January the SEC, through a court, obtained the suspension of the ICO project AriseBank. In November, FBI agents arrested Jared Rice. He is accused of frauds with unregistered securities and fraud using electronic means of communication.