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Telegram ICO Exploited By Rogue Company

In late February of this year, Telegram Open Network Limited was registered in Britain under the name Pavel Durov, who was the founder of Telegram. The latter is a successful chat app, with 200 million monthly users, and is a commonly used platform for ICO teams and investors as a way of interacting with each other.

The Telegram Open Network, the new crypto project that is being undertaken by the company, has, so far raised $1.7 billion in funding for the token sale. They plan to offer a variety of services; such as, file storage, private VPN and encrypted browsing platforms, services for decentralised apps and decentralised browsing, as well as micropayments and P2P payment capabilities.

However, all is not as it seems at all, and in actual fact this new project has been created to divert the funds away from the actual project, and had this not been exposed, it almost definitely would have succeeded. It was a tweet that exposed the scam, after it was revealed that it was completely unrelated to the official project.

British investors started to question the authenticity of the project, after the company claimed to have $1.13 billion in capital. When this was investigated further, it listed Durov as the director, founder and secretary, and listed him as British citizen, when he actually a citizen of St Kitts and Nevis.

When registering a company in Britain, applicants are expected to verify their own details, which means that scammers can quite easily set up a fraudulent company, which is sadly becoming all too common in the cryptocurrency market.

The ICO made $850 million last week which is on top of the $850 million that was raised in February. A number of investors have profited by flipping their tokens before the sale has gone public. The ICO market is absolutely booming, so, with this in mind, it is easy to see why they were able to deceive their investors.

Featured Image Original Source: Wikipedia Commons


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Frances is the head writer for Crypto Daily, and she is responsible for bringing you the latest news on everything that is related to the Crypto world. She has a keen interest in Cryptocurrencies, and has many years of experience writing in all different roles. She is incredibly passionate about writing, and this combined with her interest into the finance, and virtual currency sector means that you are kept up to date with all of the latest news and information regarding all cryptocurrencies.