Karat Gold ICO Scam! The number of ICO scams is so astonishing, it’s hard to keep track of them. The majority (over 90%) of these crypto projects no longer exist. Some are currently under U.S. Security and Exchange Commission investigation, while others have disappeared, never to be heard again.
The SEC announced late last month they’re going after Jonathan Lucas; CEO of Fantasy Market, whom the SEC accused of running a fraudulent ICO. Now it’s Karat Gold’s turn to feel the wrath of the SEC. The company raised $100m during its initial coin offering in 2018.
Karat Gold ICO scam timeline & false claims
Why is the SEC going after Karat Gold ICO while others are roaming free? Well, the cryptocurrency project developers told its investors during the Initial Coin Offering their tokens are backed by real gold reserves. That’s the main problem. No one is able to verify any gold reserves own by them.
Secondly, the Initial Coin Offering was conducted without a banking license, which is required in the United States for such project. The real real red flag is the claim that Karat Gold coins have its own crypto bank hosted in Miami Florida to back the purchased tokens.
Even more scandalous, Karat Gold has confirmed attempts to raise more money by conducting a second ICO later this year. What happened to the $100m raised? The SEC wants to find out. There is no progress on the project to date though investors were promised a beta.
Karat Gold tokens or KBC tokens are currently worthless even though they’re trading on more than 25 exchanges. After the investigation announcement, investors are rushing to liquidate the crypto asset in order to recover some of their investment.
Did you invest in Karat Gold ICO scam supposedly backed by actual gold reserves?