Crypto exchange Bitfin.io is preparing to take legal action against controversial digital currency Bitfincoin for trademark infringement, Finance Magnates learned.
Bitfincoin launched its initial coin offering (ICO) in December 2017, right at the time when the crypto and ICO market were at their peak.
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The company claimed that it was developing a platform that would make “transaction safer with blockchain and faster with ERC20 standard.”
According to the project’s roadmap shared on bitcointalk.org, it started the development project in November 2017, just a month before launching its ICO, and was also aiming to launch desktop and mobile-based wallets by mid-2018.
Though the company was offering its coin at $0.6 apiece, it was determined to push its value to $150 by the end of last year.
A scam indeed
Despite the promises, the ICO of the project was a bust as it failed to provide some basic information, resembling a scam.
The project did not reveal its team members which immediately alerted the seasoned crypto investors. It even promised up to 48 percent return-on-investment every month through its so-called lending program, which was too good to be true.
“Bitfincoin Lending program uses BIC trading bot that will get you a return for up to 48% per month. You can invest Bitfincoin in Lending program by choosing your preferred lending amount,” the company noted on bitcointalk.org.
After a failed attempt of scamming investors, the company took down its website along with its Facebook page. Though its official Twitter is still available, it has been inactive since March 12, 2018.
Dear all members,
The website is under maintenance !
We are negotiating with local government to register and approve the lending program .
The lending function will be activated when we obtain the license from local government in Singapore.
Sorry for this inconvenience !
— Bitfincoin (@BitFincoin) March 12, 2018
Similar names with no connection
Bitfin.io, the Estonia-regulated exchange, is now concerned that the resemblance of its brand name with a fraud project might hamper its reputation within the crypto trading community.
“Bitfin Exchange is taking action against Bitfincoin in order to protect its name and interests,” a spokesperson of the company to Finance Magnates.
“Bitfin, an EU licensed and regulated Crypto Currency Exchange is in no way connected to Bitfincoin, and will seek through legal proceedings to protect its trademarked name as well as distinguish itself from what appears to be unethical practices that tarnish and damage the cryptocurrency world in general.”
Is there any escape from scams?
During the boom in the ICO market, shady crypto projects were very common, which primarily targeted inexperienced investors by making big promises. Finance Magnates recently reported that South Korean crypto wallet PlusToken disappeared with an estimated $3 billion of investors’ deposits.
Two crypto exchanges – Bitsane and Coinroom – also allegedly disappeared overnight with millions in clients’ funds.