The business model called for prospective “affiliates” to buy “cryptonyzed gold” tokens, then award commission to “affiliates” for signing up additional buyers. The company representatives claimed the token was backed by a “cryptocurrency bank” in Miami and a gold mine, Fort Dauphin, in Madagascar. However, the article notes the mine on the island under that name contains only zircon and titanium.
German Crypto Firm Ordered to Cease-and-desist After BaFin Calls Foul
The Karatbit Foundation, a German cryptocurrency company with endorsements from a number of ex-footballers, was ordered by the nation’s banking Watchdog, BaFin, to stop its blockchain operations after it was accused of “operating a pyramid scheme.” So reports The Next Web.