Block Broker: the Anti-Fraud ICO That Was a …. Fraud

Block Broker: the Anti-Fraud ICO That Was a …. Fraud

Block Broker, an ICO which claimed to offer investors protection against unscrupulous ICOs has appeared to have disappeared in an exit scam of its very own.

The project preyed on investor fears by noting that “fraud has become a major issue,” and claiming that Block Broker “has set out to provide a 100% safe environment for ICO investors.” The platform was claiming that it was setting out to be “the first decentralized ICO broker service to completely eliminate ICO fraud.

Though as yet there is no official word that the founders have exited with the cash, the signs do not look good. Visitors to the company’s website are greeted with a message that, “The Block Broker Platform is undergoing maintenence [sic]. Please check back soon. Thanks.” The project’s Telegram channel and Twitter account have been deleted.

Writing on the wall

The news will come as no surprise to those who have been following the BlockBroker story. Suspicions were voiced on Reddit in May when user “paperplane-pilot” pointed out the striking resemblance between CEO and founder “John Jacobs” and photographer Alex Amadeo. On being notified of the similarity “Jacobs” abruptly changed his picture (though not, in this case, to Ryan Gosling).

Indeed, the entire Block Broker team were apparent unknowns in the industry, and the website did very little to introduce them other than offer brief, detail-light descriptions. Their LinkedIn profiles were also notably short on verifiable employment histories. At this point it seems likely that the whole team, and its photos, were fictitious.

According to an archived image of the website, the ICO raised more than $3 million, though as with everything else to do with this ICO, that number would be hard to confirm. And once again, this appears to be an ICO which raised basic red flags that many chose to ignore.