TokenGen and its sister company, Blockchain Mob are under investigation for alleged theft, fraud and extortion. According to the Youtuber and blogger, Ted Lancer, the ICO Mobilink made allegations against TokenGen, which they contracted to make the backend of their system and to facilitate the launch of the ICO.
In the last months, several ICOs have been accused of scam, and fake coin offerings. The allegations seem very credible due to the fact that some ICOs have presented similar ways of operating in the past. Just to mention one of these cases, Mr. Lancer explains that the cryptocurrency Onecoin was raided in Sofia, Bulgaria, as a Ponzi scheme. But the coin remains operational, as well as other ICOs.
The extortion by these developers works as follows:
“They build up back offices for upcoming ICOs and their structure token systems. At the point an ICO is about to go live, they lock the clients out of their back office and try to extort cash or tokens from them. Many ICOs that do not have the funds start over again and pay the extortion.”
At the moment, something very similar is happening to Mobilink Coin. Token Get is a developer from Sofia, Bulgaria, contracted by Mobilink Coin to build their back office for their upcoming ICO. But Mobilink alleged that they requested three week extension of their ICO launch and that Viktor Petrov, CEO of TokenGet and Blockchain Mob, threatened to take ‘drastic measures.’
But this is a very complicated situation due to the fact that Mobilink has already paid thousands of dollars in Bitcoin to TokenGet.
Additionally, as stated by Mobilink Coin, somebody with permission signed in to Mobilink coin’s Google Cloud and changed passwords and locked Mobilink out of their back office. Furthermore, they stole the company’s payment data and Mobilink’s database, misappropriating tokens to four separated wallets. Apparently 900 million tokens have been stolen when Mobilelink was locked out of their dashboard and was not able to conduct transfers during this period.
Mobilelink says that MobileGet and Blockchain Mob have been involved in this situation. They are being alleged of theft of tokens, theft of financial data, and extortion.