Karatbars International is accused of conducting a MLM scheme that had promised a near 4000% return on investment to its ICO buyers. This lofty goal was to be delivered through swapping investors purchased coins with bullion. The project’s claim was that the ICO money would enable it to develop mines across Africa. However, none of the projects’ claims have come to life.
Instead, the company and its well-known promoters have come under fire.
Here’s a quick timeline:
Q1 – Q2, 2018: Karatbars ICO goes public.
Mid-2018: ICO ends, with golden reviews from ICO Bench. (interesting note: ICO Bench’s “Benchy” algo scores Binance’s BNB as 1.2 stars.) ICO claims to have raised $100M, making Karatbars one of the highest fundraises in ICO history.
May 2019: John McAfee endorses Karatbars.
June 2019: News BTC initiates organic promotions for Karatbars.
July 4 2019: Gold Independence Day. Investors promised return of 40x. Event fails and investors get nothing.
May – July 2019: Cointelegraph initiates massive promotional campaign for Karatbars with consecutive sponsored content and banner ads. CCN joins in and initiates additional promotions for Karatbars.
July 2019: Karatbars’ heavily-marketed Gold Independence Day arrives. This event was meant to enable investors to redeem their gold. Karatbars hosted the event but sought a several month extension.
August 2019: German press release states Harald Seiz, Karatbar CEO, admits in court that his project issued useless tokens that have no utility or value. Simultaneously, minor German media site releases media to defend Karatbars.
October 2019: Media claim that Karatbars’ promoter is under investigation by Florida Authorities. Additional media release editorial pieces on Karatbars. HitBTC delists the coin. CoinMarketCap issues a warning.
October 2019: Bitcoinist releases promotional content in defense of Karatbars. Meanwhile, other Crypto media scramble to hide their links to Karatbars.
There are several important things to note.
Notable members of the Bitcoin community have accused Karatbars of being a scam. The popular MLM research site, BehindMLM, has also accused Karatbars of being a scam. Various cryptocurrency media, even those that once promoted Karatbars, accuse the company of being a scam. There is no legal verdict yet.
Karatbars maintains its legitimacy. However, the company’s leadership is currently in court. CoinCurb will announce court decisions once they’ve been made public.