Fraudsters Take Aim at Investors in Controversial KodakCoin ICO

KODAKCoin's backers are calling a crypto exchange's ICO launch claims "fraudulent."

AccessTimeIconMay 4, 2018 at 5:45 a.m. UTC
Updated Sep 13, 2021 at 7:54 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A representative for the company behind the long-in-the-making KODAKCoin initial coin offering (ICO) has accused a Hong Kong-based cryptocurrency exchange of fraud after it claimed it would host the token sale.

According to a page on the Hong Kong-based exchange LBank.io, the platform's ICO section says it is about to open the KODAKCoin token sale on Friday, May 4 at 20:00 Beijing time, or 12:00 UTC, which will end at the same time on May 11.

screen-shot-2018-05-03-at-4-08-13-pm

But the platform behind the digital rights management-focused coin first unveiled in January says that isn't true.

In an email response to CoinDesk's request for comment, a spokesperson for KODAKOne called the information "neither authentic nor accurate."

"It has come to our attention that more than one fraudulent websites have been promoting the sale of KODAKCoin. All factual information regarding the availability of an ICO to accredited investors will come directly from KODAKCoin and its authorized representatives."

The rep went on to say:

"To clarify, WENN Digital is only offering the SAFTs and the underlying KODAKCoin in exempt transactions to 'accredited investors. Offers and sales of the SAFTs and the underlying KODAKCoin outside the United States will also be made in accordance with the laws and regulations of the relevant jurisdictions."

The KODAKCoin sale was expected to begin at the end of January but was instead delayed for what was initially said to be several weeks.

Most recently, WENN Digital, KODAK's partner in developing the cryptocurrency, is pitching the sale to be conducted by way of Simple Agreements for Future Tokens (SAFTs), which brands the coin to be a utility token and can only be sold to "accredited investors."

According to LBank.io's token sale page, would-be investors can purchase KODAKCoin at a 1:1 ratio with tether or USDT, the dollar-pegged cryptocurrency tied to crypto exchange Bitfinex. The exchange's page claims that there is a funding hard cap of 8,000 ETH.

Data from CoinMarketCap shows that the LBank.io is currently the ninth-largest cryptocurrency exchange by trading volume in the world, with over $421 million worth in transactions during the past 24 hours.

While LBank.io has not yet responded to CoinDesk's requests for comments, its website indicates that the firm was founded in 2017 and is currently based in Hong Kong

Kodak film image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.