Seele’s ICO Compromised as Over $1.8 Million Worth of Ether Stolen

Feb 05, 2018 at 10:19

News site, Finance Magnate said that the initial coin offering (ICO) of Seele, a Blockchain project has been compromised by scammers who stole over $1.8 million worth of Ether.

The report noted that attackers managed to scam investors by posing as admins in the company’s Telegram channel.

Earlier reports from ICOdrops noted that Seele’s official ICO drop of 1 billion ERC-20-compliant SEELE tokens is supposed to take place “soon.”

The scammers posed as two admins of Seele’s official Telegram channel @SeeleSupport and @nicsmith who solicited members of the Seele chat over the direct messaging feature for Ether as part of a private sale.

Dr. Nick Smith is a data analyst at Seele and the Telegram channel reported that the scammer used his name and picture on the fake admin account.

Seele’s real administrators stated that they have already formed an emergency response team and added a double authentication method for administrators to avoid the same incident.

Likewise, the real officials of the blockchain project which bills itself as “blockchain 4.0” posted the scammer’s wallet address, 0xB3239EF7a0fC08d56402a44A5367b8cdDaf295b8, which has a value of about $1,875,622.75 as of this writing.

“We are deeply sorry for the scam. Although Seele has not started the presale, we will take responsibilities to minimize the loss of community members by making detailed compensation plans,” Seele further expressed.

However, various members of Seele’s Telegram channel insisted on the possibility that the scam is an inside job citing that only an admin can make someone else an admin in the channel.

Last month, several cases of scams in cryptocurrencies and ICOs were also recorded including the cease and desist order of Texas regulators to self-named cryptocurrency bank, AriseBank after it was found out that its operations is not legitimate.

Other cryptocurrency scams that were recorded last month also involved the raid of European Union crime fighting units against Bulgarian offices of the Ponzi-scheme OneCoin as well as the discovery of multiple fake accounts of Charlie Lee on Twitter that scammed followers through fake LTC giveaways.