RATE Group | German firm told to wind up cryptocoin business after pyramid scheme claims | Technology
68523
post-template-default,single,single-post,postid-68523,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

German firm told to wind up cryptocoin business after pyramid scheme claims | Technology

13 Nov German firm told to wind up cryptocoin business after pyramid scheme claims | Technology

Posted at 18:22h in Cryptocurrency News by

[ad_1]

A German cryptocurrency company that used the former football stars Lothar Matthäus, Roberto Carlos and Patrick Kluivert to promote its products has been ordered by a German watchdog to wind up its blockchain-based business after allegations it was luring customers into a pyramid scheme.

Karatbars, founded by a Stuttgart-born former vacuum cleaner salesman, Harald Seiz, in 2011, has promised to revolutionise the world’s financial system through its internet-based currency.

The company offers online purchases of “cryptonyzed gold” tokens to prospective “affiliates”, who are then offered a commission to sign up other affiliates.

A fully licensed “cryptocurrency bank” in Miami and a Madagascar mine containing €900m (£772m) worth of gold have been cited by Seiz as his company’s assets, thus guaranteeing the stability of his currency.

Seiz claims to have raised about $100m (£78m) through sales of his KaratGold Coin (KBC).

At packed launch events in Cape Town and…

[ad_2]

Source link

Tags:
, , , , , , , , ,