Treasure ICO? Company Claiming Discovery of $133bn of Gold in Shipwreck is Launching a Cryptocurrency

Avi Rosten
  • 22 Jul 2018
  • /
  • In #ICO

In what seems to be a fascinating world-first for the crypto space – a new treasure-backed ICO might be on the cards.

Shinil Group, a Korean company claiming it has discovered $133bn (150 trillion Won) worth of gold in the wreckage of a 113 year-old Russian cruiser, has said it is launching an ICO.

Hitting news all over the world last week, the Seoul-based treasure-hunting company released submarine footage of what it believes to be the Dmitrii Donskoi – a Russian ship that disappeared in 1905 off the Korean island of Ulleung during the Russo-Japanese war of 1904-5.

Estimating that the ship may have contained 200 tons of gold, Shinil Group originally said that half the gold would be returned to Russia and have now said that they are launching their own cryptocurrency to be called “Shinil Gold Coin.”

Although no details or plans for the coin have been released, the treasure aboard the ship will act as collateral and reportedly one Shinil Gold Coin will be worth 10,000 Won ($8.90) – with the ICO sale set to commence on July 30th.

Scepticism about Claims

Shinil Group’s claims however, have been strongly contested.

Significantly, the government-run Korea Institute of Ocean and Science Technology (KIOST) have challenged the company’s claims to have found the Dmitrii Donskoi – telling South Korean Media that the institute itself found the wreckage in 2003, while Russian academics have thought it unlikely that Russia would have stored so much gold in one vessel. 

With a South-Korean construction company also claiming to have previously found the ship and similar decades-old claims used by companies to artificially inflate their stock prices – it is understandable why sceptics abound.

With as yet no whitepaper nor an explanation of how the new coin will be used – shrewd ICO investors for now will likely wait for further confirmation of the claims as this intriguing story develops.

SEC Accuses California Scammers of Using Fake Crypto Trading Bot to Defraud Investors

Michael LaVere
  • The SEC has accused the founders of Dropil, Inc. of defrauding investors with a fake crypto trading bot and falsified profitability reports.
  • The complaint alleges the Dropil founders diverted investor funds from the DROP ICO to their personal digital asset and bank accounts. 

The U.S. Securities & Exchange Commission (SEC) alleges three California scammers defrauded investors of millions using a fake crypto trading bot and falsified reports. 

According to the complaint filed by the SEC on April 23, the SEC has charged Dropil, Inc. and it’s three California-based founders with defrauding investors in a “fraudulent and unregistered” initial coin offering (ICO) which raised more than $1.8 million from thousands of investors. 

Dropil, Inc. founders Jeremy McAlpine, Zachary Matar and Patrick O’Hara were accused of selling DROP tokens from January to March 2018. The complaint states investors were told their funds would be pooled and used to trade various digital assets by a “trading bot” named Dex, using a proprietary algorithm designed by Dropil. Investors were promised a distribution of the profit in DROP tokens every 15 days. 

However, the complaint alleges investor money was diverted to other projects, as well as the founders’ “personal digital asset” and bank accounts. Dropil also allegedly created false profitability reports, giving the appearance that the program was profitable. 

The founders were accused of misrepresenting the volume and value of DROP sold during and after the ICO, claiming they had raised $54 million from 34,000 investors despite only receiving $1.9 million from less than 2,500 participants. 

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