Home / CRYPTOCOINS / Bee Token ICO Stung by $1 Million Phishing Scam

Bee Token ICO Stung by $1 Million Phishing Scam

Investors in the decentralized almshouse sharing network Bee Token’s initial coin offering (ICO) have been burned of nearly $1 million in just over 25 hours.

Bee Representative, which recently partnered with San Francisco-based financial services stand WeTrust to create a decentralized competitor to home-sharing service AirBnB, launched its also clientage ICO on Jan. 31.

However, while the startup runs its token sale, scammers asking as operators appeared to have launched their own version. Using email approach devotes like [email protected], the scammers contacted would-be purchasers who then signed up for the full token sale.

All told, signs said that those involved collected at least $928,000 from capacity investors.

It is not immediately clear how the scammers acquired investors’ emails, yet one Reddit user claims the startup failed to secure their email database. The drawing involved emailing victims an ethereum address or a QR code which actress to the address, telling them to invest quickly to significantly increase their resurfaces, according to one user who shared the email they received.

Three ethereum approach devotes, two of which are confirmed to be part of the Bee Token scam and one of which has only been authenticated to be related to phishing schemes in general, show balances ranging from $100,000 to more $600,000. The earliest transaction for any of the three addresses happened on Jan. 31, at unsympathetically the same time the token sale began.

In a statement released late closing week, the company confirmed the existence of the scams, saying investors should exclusive send funds to an address listed on the startup’s official website.

Unusually, the company went on to state that even email addresses ending in @thebeetoken.com purpose be impersonators:

“Further, we will NEVER communicate ANY funding address via any conduct other than on beetoken.com. If you are solicited to send money to an address (impassive if it’s from a thebeetoken.com email address, official Bee Token social normal accounts, or Bee Token telegram moderator/group), please report this to a chair on Telegram (@DTodd) and email [email protected]

In another statement, the suite stated it would not use QR codes, give 100% bonuses, accept more than 0.3 ETH or cohort with Microsoft.

The startup completed a successful private pre-sale in in December, as well as a public pre-sale earlier this year. So far the ensemble has raised roughly $10 million.

A spokesperson for Bee Token did not immediately come back to a request for comment.

Bees image via Shutterstock

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