Ethereum-based Seele ICO becomes an object of scam, $1.8 mln lost

While “blockchain 4.0” in the marketing materials itself looks scammy, the Ethereum-based initial coin offering of the project called Seele itself is almost certainly not a scam. But still, it became involved in frauds indirectly, after some miscreants decided to use social engineering and disguised as the administrators of the project in its official Telegram channel.

Through manipulation, they stole $1.8 million, which is not the biggest sum witnessed by the market observers by far, but still big enough to cause a scandal. The community is now very frustrated by the fact that the real managers of the project were not able to detect and ban the fake ones in time. According to some cryptocurrency-related media websites, some even suspect an inside job.

Meanwhile in Steam (some accounts in this video game platform are worth hundreds of dollars) there are constant reminders about possible fraudsters demanding passwords and other educational materials aimed at prevention of such scams. This and the practice of the world banks can serve startuppers as a good example of how to counter scammers who want to steal from the clients of a good project.