Confido Tricksters Walk Off With $375k in ICO Scam?

Confido Tricksters Walk Off With $375k in ICO Scam?

It’s another reminder of the risks surrounding ICOs. Confido, an ICO start-up that was proposing the creation of a Blockchain-based escrow payment and delivery service managed by smart contracts, has disappeared into the ether. 

With its website having gone offline and its project team leads nowhere to be seen, contributions to the ICO had reached a combined total of USD $375,000. It is not known at this stage how many investors have been impacted by the apparent scam. 

All the Tricks

The Confido ICO entered pre-sale on October 21 for seven days before immediately hitting full sale for the subsequent ten days, limiting investor contributions to 2 ETH. Limited contributions are occasionally imposed by ICOs as a measure of restricting the number of large investors in a bid to undercut potential future pump-and-dump schemes. 

It appears that the Confido ICO may have done so in order to present a veneer of credibility to the project. The original website had listed a team of four among its members, none of which had made reference to LinkedIn profiles or previous work experience. 

It is not known at this stage if the individuals listed on the original website were in fact tied to the project; their social network accounts make no reference to the Confido ICO itself. 

The ICO was listed as US-based with both an address and a phone number based in Missouri. The listed number appears to be tied to a small family law firm which, as of time of publication, was unavailable for comment. 

SEC Recent Warnings

This latest entry in what appears to be fraudulent ICO activity comes on the back of multiple warnings released by the SEC concerning the high risk of fraud in the ICO arena. The SEC filed two more cases of fraud in October. It is unclear at these early stages what action, if any, they will be taken in relation to the Confido incident.