As per the latest research reports of the Wall Street Journal, the crypto projects raising funds have serious red flags. More than 15% of the crypto projects raising funds through Initial Coin Offerings (ICOs) have red flags that led to terminating the functioning of the processes involved in them. An investigation has been done on the 3300 fundraising crypto project offerings and other ICOs, out of which 513 found committed plagiarisms and promised illegal returns.
Crypto Projects Suspected – Under Investigation
The white papers of all the 3300 projects examined by The Wall Street Journal were listed on Tokendata.io, ICORating.com, and ICOBench.com. An investigation was done on the reports where reports compared the sentences of all the reports with each. The results showed that more than 10,000 sentences appeared more than once – Plagiarism. The papers were further investigated to identify fake team listings. The teams which were suspected to be fraud – with fake founder and sponsor details were marked red flag. The fundraising crypto projects have no such valid details by which an investor can trust the offerings.
Out of the total 513 fundraising crypto projects, more than 30 were already under the inspection of regulators, and over half of the websites linked to the projects are currently unavailable. The websites were checked manually by the team of researchers. The reporters reached out to the flagged project’s offerings, but hardly few of them responded.
An ever-increasing program on Initial Coin Offerings (ICOs) has been conducted by the United States Securities and Exchange Commission (SEC). Earlier, regulatory authorities of the United States and Canada had launched an operation named ‘Crypto Dweep’ to control the widespread of these frauds.
The SEC is asking for international support – to enforce more rules and regulations on the ICO sponsors who are offering investment opportunities from outside the United States. In order to control ICO frauds, the SEC is hitting national celebrities who are promoting ICO scams – as well as imposing more strong laws.