ICOs have been all the rage lately, with money being thrown at them faster than they can come up with viable products.
As with anything, the more money being thrown at a sector, the more ripe it is for fraud.
Which is exactly what is going on right now in the ICO sector.
This is bad enough anywhere, but it could have dire consequences for the ones running these types of scams in China.
China plays by a different set of rules.
Although rare in the rest of the world, China has been known to execute people for committing white collar crimes. Specifically those running illegal fund raising schemes.
Which is basically what an ICO is, a fund raising mechanism.
According to Chinese law:
Any kind of public fundraising that does not fall under the guidelines set by the 1997 China Criminal Law would be considered illegal.
Judging by this definition it is quite possible that if an ICO doesn't fall under those guidelines, it would be considered illegal. If the organizers of said ICO are caught, they could be put to death.
How likely is it to actually be put to death?
No one really knows for sure as China doesn't readily give out that kind of information.
However, we do know that in 2013 Zeng Chengjie (pictured above) was put to death by lethal injection for his white collar crimes. For the severity and far reaching nature of his transgressions, he was nicknamed "China's Bernie Madoff".
His specific crimes were said to be illegal fundraising and financial fraud.
There is that "illegal fundraising" phrase again...
Some rough estimates:
According to the Cornell Center (no relation to @jrcornel) on the Death Penalty Worldwide, China keeps the total number of executions concealed as a "state secret."
However, judging by estimates received from numerous human rights organizations, it can be estimated that China carries out thousands of executions per year. Which is more than every other country on the planet, combined.
How many of those are because of white collar crimes?
No one can say for sure, but we do know they are more than willing to use that form of punishment.
Therefore, anyone that wants to commit financial fraud is already playing with fire, but doing so in a place like China, really is putting one's own life at risk.
Stay safe my friends!
Sources:
https://cointelegraph.com/news/chinese-exchanges-issue-ico-warnings-amid-death-penalty-panic
http://www.bitsonline.com/china-death-penalty-ico-traders/
http://www.deathpenaltyworldwide.org/
Image Sources:
http://www.bitsonline.com/china-death-penalty-ico-traders/
http://www.fubiz.net/2012/03/01/playing-with-fire/
Follow me: @jrcornel
so many scams out there
Know what you own, or are potentially going to own! ;)
what is a upcoming safe ico to invest in?
Thank you for this article which draws attention to the chances of scams in the current ICO craze. As you have correctly pointed out, it is not merely risking financial disaster but in places like China, it is playing with one's own life. I had read about the Chinese Transport minister being sentenced to death a couple of year ago. Therefore, I do believe your statement that there could be severe (including Death) penalties in China.
As a minnow who is just learning about Steemit and crypto in general, many confusing things such as ICOs seem attractive for investment of money and effort. Articles such as yours help in guiding us. Thank you.
Upvoted and followed.
I request you to visit my latest blogs when you have time and leave your valuable comments. I have posted a blog about a mystique boat ride on the river Ganges :)
Regards,
A minnow (15 days old)
Just more regulation in that field would solve that issue. A death penalty is too harsh and most countries have abolished such practices altogether.
Most have indeed, but not China...
Have there actually been any major Chinese ICOs? I only know of Antshares which is legitimate.
voted up and resteemed - Informative post.
So ICOs from China is most likely legit? vs Cayman islands?
No idea. There are scams everywhere. The best thing to do is research research research. If the creators have a good reputation or are attached to people that do have a good reputation, the odds of it being legit increase. I personally don't buy too many ICO's. I stick to Bitcoin, Ether, and Steem.
Thanks!
Can I just say, God Damn I hate Thieves.
I don't mean to sound self righteous, I made some mistakes in my youth.
3 reason why you shouldn't Steal:
1 - Law of attraction, by stealing you open a door to bad things happening to you. Karma.
2 - You don't know how close someone may be to suicide or falling off the wagon, whatever.
3 - When you steal, you sell off a little piece of your integrity, when you cheat people, another piece of your integrity and while you may be the last to know it, one day comes the realization you not only have no integrity, but your life is a complete wreck.
Again I'm older than many on this site, and I don't mean to preach, but regret is a motherflucker...
Ok, thats a BIT extreme
there have been a fair number of ICO scams running around....but their law...thats just a bit too much, but theyre also not known to be the most human rights friendly country on earth...so...not surprised
China dosnt fuck around
you are right
These Communists don't mess around. Going to cancel my flight to Beijing now...
Hm, that sounds risky, but have there been any chineese ICOs in China as of yet?
Antshares, isnt that one from China?
They should just remove their balls
That's scary that China is executing thousands of people per year... pretty brutal.
Yes I wonder how many are murderers and how many stole bread?
Thousands of people in a country with 1.5 billion is nothing, at least in the eye of authorities.
Very nice :)
money makes people blind...
Nice picture
Which one?
that is what was said in the web bot report to watch for for sketchy ICO's thanks for the heads up and upvoted
That was an interesting post. I wonder if they will make an exception for ICO's being that is a new technology. China stands to make a good deal of money from the ones that are not fake.
Thanks for the heads up! I shall be on the look out in future to see exactly where ICOs are based!
Seems like the Chinese don't play or joke around with individuals who ruin others lives. They also give death sentence to drug dealers, murderers, treason and God knows whatever else. I think there are too many ICO coming outand the best thing is to do your due diligence before investing. Thanks for sharing
That is great advice. I personally stopped paying attention to them as an investment. After they have been around a while and have some proven technology I may take a look, but not before they launch.
China is acting cruelly ... But there are much fewer scammers than anywhere else.
Perhaps they are on to something...
I must say I never planned to make any crime, especially in China, ha-ha, but it was really interesting to read.
You could argue that the authorities there are placing greater weight on the human rights of investors than those of the scammers.
Great point. I would tend to agree. It would be interesting to see how effective that is at reducing it vs. other countries that have much more lenient penalties?
Hmmm...sounds like we need to implement such punishment in the U.S. - it would not eliminate financial fraud completely, but I bet it would knock it down a peg!
Haha I bet it would as well. If nothing else it needs to be more severe!
It's a swell way to discourage crime (not to mention it helps keep the recitivism rate low)
The Crypto market is already getting watered down. There's so many now, people can't decide where to invest. I stick to the old standby's and ignore all the new stuff (and that's scary enough)... "A fool and his money are soon parted."
I hope they start regulating these ICOs pretty heavily in the very near future. The scams are giving the legitimate ones bad names.
They would get weeded out in time... the question is, how much time do we have? If the govt. steps in, it will become FUBAR and the whole thing will go to pot... If we're lucky one or two Govt. controlled currencies will survive. If there were a way to police this ourselves...
Good post, and I agree. If you don't plan on building your coin and really have an idea and a goal and a vision, you should not be doing this. I just don't understand folks with this get rich quick scheme. Do your research, most people that become wealthy do it over time, not overnight.
Great point and very well said!
I will AVOID the ICOs till I know the individuals behind them and to be sure to read the white paper CLOSELY!
great post
im cryptocurrency trader i follow you
interesting
Can you imagine if after 'sentence is carried out' it becomes known the convicted didn't commit the crime? Ooops!
Can't exactly reverse the sentence.
Would be better to take all their property and make them start over from nothing.
Yes, there is that... I wonder if that has happened? If they are executing thousands every year I am sure it happens quite a lot... ugh.
That's ok. China and Bitcoin are getting along fine. Why would they need another coin to come, and interrupt?
Ya in China they just round up the gangsters and kill them. I love how they roll in China.
Good Article! that's exactly why they run this ICO SCAM from the Netherlands right now: https://steemit.com/crypto/@cryptopaul/ico-scam-alert-dentacoin-com
in the Netherlands (if they can even catch you because it's done by an Hungarian) the worst thing they will give you a slap on the wrist and of you go....Hope nobody bought into this ICO
Watch out scammer