Bananaphony: Russian investor sues Bananacoin, suspects fraud

In probably the first ever criminal case against ICO in Russia, local investor Evgeny Titus requests from authorities to prosecute criminals behind Bananacoin.

This initial coin offering, as already described in a separate report by Bitnewstoday, offered its clients tokens allegedly backed by the price of bananas they claimed to have been growing in Laos. The investor has made an investigation and found out that all promotional materials related to the project have little connection to reality. The situation is sensitive for Mr. Titus because he has acquired 1037 tokens of this project.

The Laos plantation the photos of which are present on the website does not belong to Oleg Dobrovolskiy and other people behind Bananacoin, Evgeniy Titus insists. The real owners of the plantation have confirmed that Bananacoin is a fraud.

This news proves how important it is not to invest in initial coin offerings blindly. The detailed investigation of the project is nothing new in the investor’s playbook and existed long before the first bitcoin has ever been mined. Due to the fact that initial coin offerings still remain unregulated the need for skeptical approach rises even more.