Company raises $347K ICO, vanishes

A company called Confido created a small ICO by selling special CFD designed to allow “safe and trustless cryptocurrency pays. According to ICODrops they raised their aim of about $400,000 and rapidly disappeared, taking the money with it. The site is currently a parked web server that points to nothing.

The apparent founder and former eBay employee, Joost van Doorn, posted a message to a Confido Reddit board claim that “We are in a tight spot, as we are having legal trouble caused by a contract we signed. We signed the contract with assurance from our legal advisor that there was minimal danger and it would not be an issue. I can’t and won’t go into details, but he was wrong. It is a problem.”

According to the Reddit coordinator for the ICO, the move “is completely out of character” for Joost.

“There is potential that the removal of everything was due to the legal situation that they are facing, which is possible as I got the feeling that the situation was dire. I don’t agree with this course of action however, as it has left the entire community, and myself, in the dark, ” he wrote.

The ICOs or token sales are red hot right now but I’ve spoken to a number of founders who are dealing with the same legal troubles- albeit in much less drastic routes- and who are eschewing the process entirely due to legal, logistical, and security issues. Devoted the amounts of cryptocurrency involved and the multiple moving proportions including legal cover, white paper production, and monetary management, it’s a wonder more token sales don’t flame out like this one.

As of today there is no way to contact the founding squad. The tokens rose to a price of about$ 1 before crashing back to a penny.

“These were very good scammers, ” Eli Lewitt, co-founder of TokenLot, told Motherboard.

UPDATE- Kraft& Wurgaft write they they do not have any of the wayward coins 😛 TAGEND

“Our firm offer escrow services for TokenLot.com, a company which hosted the Confido ICO. The services we provide include preserving funds received from ICO investors until the Tokens are distributed by the issuing company. Once we receive confirmation that the Tokens have been distributed, we release the funds received to TokenLot.com for distribution to the Company selling the Tokens. Thus, once the Token sale is complete, we no longer preserve a wallet or hold any funds related to the sale. We furthermore have no direct involvement with the issuing company, i.e. Confido, as our client is TokenLot.com.”

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