ICO Scams Plague Ethereum Founder

Anything that becomes popular is doomed to also suffer the negative sides of fame

by Pavel Velichkov
05 January • 2 min
In News

People try to take shortcuts and earn quick money on the back of your hard work and sometimes this may even compromise your own activity. There are literally hundreds of examples in the context of cryptocurrencies. There are so many people jumping on the crypto wagon nowadays that finding a way to rip them off of their money has become a sort of creative contest for hackers all over the world.

Some hackers put a lot of imagination and hard work in their scams, others are more direct and rely on the fact that not nearly everyone who gets into the crypto universe is ready for it.

In a recent attempt to scam people, hackers have started claiming they are associated with some of the industry’s heavyweights. One of the latest scenarios had a hacker claiming he was associated with Vitalik Buterin, the father of Ethereum.

The situation got so serious that Buterin himself found it necessary to address the issue. In a recent tweet, he posted a screenshot of a Reddit user that warns readers against a suspicious new coin project that lists Vitalik Buterin as a partner. Buterin also made it clear that people should not trust any ICOs that have his name listed amongst the partners in the project.

 

Investigating the case

 

Keeping up with the people behind this scam has proven to be a difficult task. What we know so far is that the ICO that lists Buterin as a partner is called Othor. There are (or rather – were) some other suspicious traits like a surprisingly flashy promo video and a list of executives that might not even exist. The company has since deleted most of its promotional materials.

Despite the efforts of various media, nobody from Othor has ever been reached for a comment on the situation. There simply is no contact information available.

This is far from being the first ICO scam case and regulators are starting to take the issue seriously. Even though this type of scams can be run from anywhere in the world, which makes them really difficult to police, many ICO schemes are being discovered and shut down these days.