cryptocurrency exchange reimburses victims of apparent ICO scam
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Cryptocurrency exchange kucoin has announced that it will reimburse investor who used its platform to invest in the confido initial coin offering . the confido development team announced that the project has been shelved after raising $347000 in an ico leading many to call the ico scam .the confido scam is just one of the example of the various issues confronted in the ico market due to the lack of regulations covering the sector. many ico most likely fall under existing securities regulations but a great number have tried to disclaim their way out of any responsibility .
The lack of effective oversight and the incredible popularity of cryptocurrency and ico will likely lead to even more fraudulent activities in the space . however regulators are taking notice with the european securities and market authority strongly indicating their concern that ico may be skirting the law . furthermore the us securities and exchange commission . announced the creation of a new cyber unit in september . this group would have broad power including oversight over ico related activities .
Rumors have been circulating that confido themselves may issue a full refund to investors following the circulation of a dubious letter purporting to be issued by the company law firm . it remain to be seen if this will come to pass but without confirmation of the letter authenticity investors are not exactly holding their breath .
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