Reporter Unearths Crowdfunding Scam

A Geektime reporter does a bit of due diligence and determines that the AurumCoin crowdfunding campaign is a scam.

Some evidence that the plea for money is not credible:

  • the appeal to the greed and doomsday factor;
  • no rewards for donations; located offshore;
  • the company would not reveal its management;
  • the use of a stock photo of their US representative on LinkedIn;
  • their United States representative did not appear exist in a web search; and
  • the use of gold as a standard of value.

After the reporter questioned Indiegogo, the campaign was taken down as a violation of its terms of use.

Congrats to the reporter for doing some initial digging and being skeptical.

https://www.geektime.com/2017/01/22/aurumcoin-the-curious-case-of-the-gold-backed-digital-currency-indiegogo-campaign-that-wasnt/

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, discrepancies, fraud, Funding Portals, Investments, Legislative Intent, SEC, Small Business, technology, unfair and deceptive practice and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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