After Raising $100M During ICO “Gold-Backed” Karatbars Are Being Investigated By Florida Regulators

A German-based company is currently being investigated by the financial regulators of Florida. Karatbars International had an Initial Coin Offering (ICO) back in 2018 and it raised $100 million to create its own gold-backed token.

Now, the regulators are investigating the company and its KaratGold Coin (KBC), which is said to be connected to a crypto bank in Miami. The issues started when the local regulators affirmed that the company is not licensed to operate in the state and that their claim is possibly fake.

Katie Norris, the director of the Florida Office of Financial Regulation, affirmed that the investigation is still underway but that the company did not seem to have any kind of bank in the state at all.

This is not even the first time that regulators are looking into the company, which was originally founded in 2011 by the German entrepreneur Harald Seiz. Back in 2014, Canadian regulators told investors that they should be cautious when buying gold with the company. Regulators from Namibia and the Netherlands followed a similar path and warned investors, too.

Curiously, the KBC tokens are traded in over 30 exchanges, including in some big ones such as HitBTC. It was also promoted by the controversial John McAfee before and was able to raise $100 million during the ICO craze.

Is this a huge scam or only a legitimate investment that seems to exaggerate a bit? It is still early to tell for sure, as the regulators have not closed their investigation yet, but it is certain that this is the kind of investment that you should be wary about.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Hank Klinger
Hank Klinger
Hank Klinger has been working online for seven years now. He has written for several national companies. Hank has been a part of our team for over three years, reviewing ICOs, new cryptocurrencies and helping us keep up to date with industry news. His primary knowledge is in marketing, sales, and advertising, and he uses that knowledge to research and pick out reliable sources of information to use as a basis for his writing.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,194FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin Adoption Explosion in Africa, Led by Nigeria, Kenya, and South Africa

Bitcoin continues to gain traction in Africa, with Kenya being the most bitcoin maximalist country, with 94.7% dominance. The top 10 list also contains...

DeFi App Growth Boosts Total Transactions On DApp Blockchains By $4.5B In Q2 2020: DAppRadar Report

In a report by DApp Radar, the total transactional volume on DApps touched the $12 billion mark in Q2 2020, representing a $4.5 billion...

Bitcoin to Follow the Equities Market Up or Down? One-Month Correlation Spikes to an All-Time High

Yet another week of weak price movement. The world’s leading digital asset is trading at $9,072, in red with 24 hours ‘real’ volume of just...

Public Mint Launches Its Blockchain; Over 200 Banks Plan to Support Its Digital Money

vPublic Mint, a firm founded by CNET founder Halsey Minor, has announced the launching of its ‘fiat-native’ public blockchain, which enables anyone to easily...

BTC Halving Week Brings in Record Monthly New Accounts & Doubles the Revenue for BlockFi

The past two months have been incredibly dull for the price of bitcoin, but it didn’t affect the businesses in the cryptocurrency space. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today