Obama and a thousand-dollar crypto scam
Obama and a thousand-dollar crypto scam
Crypto

Obama and a thousand-dollar crypto scam

By Marco Cavicchioli - 20 Sep 2018

Chevron down

The Texas State Securities Board (TSSB) has already intervened several times to block scams involving alleged cryptocurrencies.

This time, three Ponzi schemes had to be urgently addressed.

One of these, DigitalBank, proposed by the company DGBK Ltd. based in Belize, claimed to have in preparation an anti-hacking device to store and transfer cryptocurrencies.

According to the Emergency Cease and Desist Order DigitalBank is asking for funds to develop a wallet that can only be used with the biometric data of the owner.

The wallet is called Photon Encrypted Ledger Key and would also allow anonymous and untraceable transfer of crypto and fiat currencies.

The Enforcement division of the TSSB started investigating DigitalBank after a report by a Texan citizen working in the cryptocurrency industry who discovered that the company offers potential investors both shares of the company and the opportunity to buy a token, DGBK, with the absurd promise of a return of 1900%.

In addition to the obvious absurdity of the promise of similar gains, to promote its initiative the company was using a 33-second video of former US President Barack Obama, taken from Obama’s speech during the interactive festival South by Southwest in 2016 in Austin, Texas, where he discusses the advances in technology and encryption that could allow the creation of impenetrable devices and systems.

DigitalBank invited investors to watch the video to “try to understand what Obama in 2016 already understood about the company”, so much so that they put it on their website (now blocked) as if Obama supported the project.

Obviously, the former President has nothing to do with DigitalBank.

The investments the company proposed are securities regulated by Texas law, but neither the company nor its owners are allowed to sell similar securities in that State.

Moreover, DigitalBank does not inform potential investors about its actual technical expertise or financial support.

The company only vaguely claims to employ cybersecurity and blockchain experts and cryptographic engineers and to have the financial support of an unspecified “important institution”.

As if that wasn’t enough, the team invited potential investors to participate in a bounty program that would allow them to make a profit in perfect Ponzi style.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.