The cryptocurrency market, particularly ICO’s have been frothy for some time now. Wild gains in price, as well as fluctuations in both directions have captivated the attention of investors, the media and everyday people. These incredible gains have also attracted trouble, and scammers have been making a big impact in the cryptocurrency landscape. A recent scam on Telegram took $1.8 million dollars from investors and added some new tactics which are a bit harder to spot. The good news is, Paul Walsh Founder of MetaCert has developed a tool that would have completely prevented the $1.8 million dollar scam on Telegram.
So what happened and how was the scam pulled off? The Seele Initial Coin Offering (ICO) like every other ICO had a Telegram channel setup to discuss and promote their blockchain project. This Telegram channel was the official Seele company channel with leadership and team members interacting on the channel. Scammers posed as administrators in the Seele Telegram channel, tricking many members of the channel via direct messages (DM’s) that they could invest by sending Ether to their address. The problem is, the admins were not actually on the Seele team, and were in fact scammers.
The project is now compromised as $1.8 million worth of Ether was stolen from potential Seele investors. Seele’s drop of 1 billion tokens- ERC20 compliant tokens has no definitive date, and it is safe to say that drop is now in jeopardy.
This is horrible news for the investors who were ripped off, and for the Seele project as a whole. There is a bit of a silver lining. Unless this was an inside job, this entire scam could have been prevented with MetaCert.
MetaCert is a patent pending Security API that checks in real time the reputation of http requests. This in effect warns users of potential threats before allowing known malicious web pages or other resources from loading inside the app. MetaCert founder Paul Walsh had a vision for a safer and more secure cryptocurrency landscape. With the experiences and skills he developed over his career in tech, including joining AOL when AOL was just a start up, Paul has seen the full spectrum of technology deployments and security concerns. Paul has an impressive track record in tech and put that to work with MetaCert and as a result is helping the cryptocurrency community with Cryptonite. Cryptonite is powered by the MetaCert protocol and is an ultra easy to use tool which you can run on your browser and find in the Chrome Web Store HERE. The best news? Anyone can access and benefit from Cryptonite’s technology for free by installing it and running on your Chrome browser. If the shield icon in the top right of your Chrome browser lights up as green, you can be sure the site you’re visiting is verified and safe.. as a user myself I can tell you it really is that easy.
MetaCert could have prevented the Seele ICO scam by quickly verifying and validating that the user admin accounts were not authentic. MetaCert runs real time checks of authenticity and would have quickly outed the admin accounts as not owned or run by the Seele team, while also confirming the correct accounts.
Cryptonite is catching on with over 90,000 users and growing. For more on the MetaCert Protocol and how it works, check out the Founder Paul Walsh give an explanation in this video:
To learn about some Bitcoin Scams that haven’t happened yet, check out our article here.
For more on MetaCert and Cryptonite check out their website here.
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