ICO News: Well reviewed anti-scam ICO turns out to be scam

The latest in the seemingly never ending stream of ‘exit scam’ ICOs (initial coin offerings) was perpetrated by a project called BlockBroker that billed itself as an anti-scam platform.

ICO News: Well reviewed anti-scam ICO turns out to be scam

The official website, which has since been taken down (see below), said the platform would help buyers pick reputable ICOs to invest in ‘and completely eliminate ICO fraud by creating a 100% safe investment environment’.

BlockBroker website down

“The world’s first decentralized ICO investment platform”

It also said: "BlockBroker is the world’s first decentralized ICO investment platform [it's not] and it is going to change the way people invest in ICOs [it might].

"BBK will strengthen the industry allowing the promising crowd sales to shine through and ensure that fraudulent ICOs don’t get an opportunity to tarnish the booming industry.

All of the ICOs we support are handpicked by our team of experienced professionals so that our users can be 100% confident of a safe and prosperous investment environment."

5 star scam

Interestingly (and worryingly, for would-be ICO investors), more than one ICO review sites, including ‘trackICO’, gave BlockBroker’s ICO a five star rating.

Evidently the proper background checks were not carried out and, as such, some pretty glaring inconsistencies were allowed to slip through the net, so to speak.

For example, a post emerged on the Reddit subreddit ‘r/cryptocurrencies’ that exposed the fact that the supplied photograph of supposed BlockBroker CEO, John Jacobs, turned out to be a slightly modified picture of a photographer named Alex Amadeo.

See below:

BlockBroker John Jacobs ICO scam

The rest of the team was said to hail from India, where a flurry of ICO scams have emerged from in recent months.

Here are some examples:

It’s important to always carry out thorough background checks before investing in any ICO to avoid falling victim to one of these exit scams wherein ICO organizers disappear with investor money without a trace.

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