In recent happenings around the crypto market, a company named Telegram Open Network Limited got registered on 28th February in Britain with Pavel Durov’s name as the founder who owns the company Telegram. The chat based app flaunts about 200 million users on a monthly basis with a tag of the most commonly preferred platform for proper interaction between the investors and ICO team.
The new crypto-based project named Telegram Open Network has by far been able to raise a whopping $1.7 billion in totality from the funding of token sale. It has also been integrated to offer services such as file storage, encrypted platforms for browsing and private VPN, services designated to decentralized apps, decentralized browsing, P2P payment, and lastly micropayments.
The main motive behind the creation of Telegram Open Network was the obvious diversion of funds from genuine projects. The scam might have been a successful one but was exposed recently putting a halt on the progress of events. The registration process opted by the company could have made it seem legitimate to the potential investors with a potential of fraud worth billions. However, the project was exposed by the Telegram authorities who tweeted about no official or unofficial connection with the project.
The company made a claim that raised eyebrows among the community leading to its demise as a scammer. It claimed that the company paid capital of $1.13 billion during the registration which could have easily attracted the attention of tax companies registered under the British law. This led the British investors to investigate the project’s authenticity. An up-close inspection of the scam led to the discovery that Durov was listed as the founder, director as well as secretary of the company listing. The error was noticed when the company stated Durov as a British citizen whereas he is a citizen of Nevis and St Kitts which was acquired after he made a donation of $250,000 towards the sugar production industry located on this small island based nation.
This news came as a revelation pointing out to the fact that the British registration policies for companies aren’t as strict as expected earlier. The applicants are required to verify the details provided on their own without any involvement of the authorities for cross-checking the facts and figures. The whole process can be wrapped up in less than $20 at the Companies House. The lenient rules and regulations being followed for company registration enable the scammers to dupe the victims who oversee the registration and ignore the fine complicated details of cryptocurrency, and its investment patterns which are ever changing.
According to the documents listed by the SEC, ICO has been able to make $850 million past week apart from the privately raised $850 million in February. Numerous investors in the crypto market have already made a profit by flipping the tokens long before sale going public. With an ever-increasing demand from the investors to attain a place in the ICO, it is easy for any fraud company to deceive the real investors who have been attempting to participate in the field for a long time.