Benebit was going to be a global decentralized ecosystem with a loyalty program for corporations. Unfortunately, the creator just pulled an exit scam, disappearing with $3 million in investor funds.
Some reports claim the company disappeared with $2.7 million in investor funds. Other estimates put the figure as high as $4 million.
The figure only came to light after somebody noticed that the team photos had been stolen from a school website. Once they were caught, the Benebit team disappeared immediately, shutting down their website and stealing their ill-gotten gains.
Benebit could be the largest ICO scam to date.
Obviously, there are a lot of ICO scams on the market today. Many are easy to spot: they make absurd promises about lending program ROIs or they refuse to disclose team information. Benebit, however, was clever enough to fool many supporters. The company had a full-featured website, a whitepaper, and detailed information about the team online.
Benebit also had over 9,000 Telegram followers and a positive rating on ICO review websites.
Of course, as soon as the exit scam emerged, those ICO review websites erased all positive reviews. They don’t want to be linked to the scam in any way.
In any case, Benebit.io disappeared offline on January 22.
The company was supposed to be creating a currency for customer loyalty. The website was filled with vague, grandiose statements about how they were building a “global decentralized ecosystem” for corporations. It was going to be a worldwide, blockchain-based loyalty program.
The website was filled with similar blockchain-y buzzwords.
You can look on the Benebit Telegram to find rough stories from investors. Benebit had been active for over a year on social media, which is why many people fell for the scam. They had developed a sizable community of members who were genuinely interested in the project. One investor claims to have lost 14 BTC. Another claims to have lost 300 ETH.
The company’s pre-ICO, by the way, was just one day old when they disappeared with the money.
If you learn anything from this story, it’s the importance of due diligence. Don’t trust ICO rating websites. Don’t believe everything you read on a company’s website – no matter how legitimate their project may appear to be.