Since the spring of this year, a project called CloudToken is actively developing and promoting the network, positioning itself as "the first wallet in the world that integrates all crypto assets of the blockchain on one platform." Their goal is to provide project participants with a special ecosystem of public savings.

The project supports 7 major cryptocurrencies and stablecoins, 21 referral levels, has a mobile application (wallets in leading marketplaces) and offers its participants a yield of 6 to 12% per month, as well as 150-fold profit (!) For 2019. At the same time, the first participants (top of the pyramid?) Are promised support for the issuance of payment cards.

The project attracts its participants (the number of which, according to some estimates, has already exceeded 800,000 people) with the help of the so-called "network leaders" from around the world. For example, in Russia and neighboring countries, Pavel Chernyshev is engaged in resource promotion.

Information on the project website is presented in English and Chinese, the legal entity Cloud Technology and Investment Pty., LTD is registered in Australia, and the United States is indicated as the geolocation of the site. Currently, 145 countries are involved in the scheme.

The process of making a profit is described on the resource as follows:

1. Participants send funds to ETH / BTC in the Jarvis bot asset management pool.

2. A tool called Varoom collects data from over 38 cryptocurrency exchanges.

3. Varoom transfers assets to the Jarvis AI BOT.

4. Varoom instructs Jarvis.

5. Jarvis trades on exchanges.

6. Information is collected on the latest prices at CoinMarketCap.com.

7. Members receive rewards in CTO tokens.

8. The rest of the earned funds are transferred to the Jarvis Asset Reserve.

9. Jarvis Asset Reserve supports the rate in the conversion wallet.

10. Participants can convert CTO to ETH, BCH or other cryptocurrency at any time.

The mobile application offered for download is positioned as a cryptocurrency multi-wallet with passive income (while funds can be sent in only one direction), as well as a trading bot (without confirming trading volumes). Nevertheless, judging by the volumes, the funds received from participants (victims?) Are immediately transferred to controlled sites and cold wallets.

According to an investigation conducted by the experts of the cybersecurity resource SICP (sicp.ueba.su), the total amount of funds that have passed through only one wallet currently exceeds 6 billion rubles, and this figure is constantly growing.

In particular, as a result of the investigation, it was found that all the main assets of the CloudToken project are transferred to the South Korean crypto exchange Upbit, and also are withdrawn through wallets in Thailand (in some cases they are frozen).

Below is some more evidence that the CloudToken project is just another pyramid scheme.

1. Despite the fact that the organizers of the project position it as a “completely decentralized cryptocurrency wallet”, in fact it’s hard to even call it a wallet. In fact, users only get access to the server, where they see their tokens. Judging by the CloudToken tracker on Etherscan, all it can boast of is 4 addresses and 5 transactions, with 99.9999% of the funds held at one address. Thus, buyers give their money, but do not become owners of the coveted tokens.

2. In the promotion of the service involved people who have repeatedly advertised fraudulent schemes.

3. Lack of evidence of trading using the Jarvis bot. Although representatives of the project claim that they generate profit using the Jarvis AI Bot bot, which is used for arbitrage trading on exchanges, there is no evidence of such trading on the resource.

4. Cryptocurrency pyramid based on the Ponzi scheme. Project participants on the referral side need to replenish their account by at least $ 500, after which they will be able to receive commissions for attracted people. In this case, commissions are paid up to level 21. It is unlikely that such a scheme can last long.

5. Lack of use cases. CloudToken does not have application scenarios in the real world, it can only be purchased from developers, and no token exchanges accept. The price of the token is not supported by anything, the demand for it is artificial. The company can change the value of the token at any time.

6. Lack of access to CTO wallet private keys. Users do not receive secret keys from the "wallet", instead they are given a password or PIN code.

7. The promise of high return on investment. Most projects that promise high investment returns actually turn out to be scams, unless the program has official registration and regulation.

8. Invalid information. The White Paper of the project mentions the names of people who have nothing to do with the project.

From the foregoing, we can conclude that CloudToken does not have a secure cryptocurrency wallet, its founders do not trade on the exchange and deceive investors. In addition, the project is advertised by well-known network scammers, and the CloudToken address is involved in the services of doubling bitcoins and the distribution of paid prohibited content.

Source: CryptoRussia.ru

On September 11, 2019, the Swiss financial market supervision authority FINMA published an addendum to the ICO manual, which outlined its position on stablecoin1 under the Swiss supervision legislation. Observing the steady growth of stablecoin projects since 2018, in the context of a request from the Libra Association, FINMA in the initial directions provides information on how the Swiss supervisory will apply the relevant rules for the assessment and supervision of stablecoins.

According to FINMA, the supervisor considers stablecoin in accordance with the law on supervision of an existing approach to blockchain-based tokens: the main focus is on the economic nature and purpose of the token (“substance over form”). When making decisions on specific projects, FINMA will “follow the proven principle of“ same risks, same rules ”, and also take into account the features of each project.

The requirements under the supervision law may vary depending on which assets (e.g. currencies, goods, real estate or securities) are supported by stablecoin and how the legal rights of its owners will be protected (see the Overview in the Appendix to the Guidelines ICO, Appendix 2).

FINMA provided the legal assessment and indicative classification of the Libra project in accordance with Swiss supervisory law based on the available information. It is worth noting that FINMA focused on the fact that the classification may change during the implementation of the project.

Here are a few key points:

- The project falls under the regulation of Swiss financial market infrastructure. The project, as it is currently envisioned, will require a FINMA payment system license.

- The regulatory requirements for payment systems in Switzerland are based on prevailing international standards, in particular, on the Principles for Financial Market Infrastructures (PFMI). These requirements also apply to cyber risk management.

- The Swiss payment system is automatically covered by the Anti-Money Laundering Act. The highest international anti-money laundering standards must be ensured throughout the project’s ecosystem. Such an ecosystem must be protected from the increased risks of money laundering.

- According to the Financial Market Infrastructure Act (FMIA), all additional services that increase the risks of the payment system must comply with the relevant additional requirements. This means that all potential risks of the Swiss payment system, including banking risks, can be eliminated by introducing the relevant requirements in accordance with the principle of “same risks, same rules”. In connection with the release of Libra payment tokens, the services planned by the Libra project will clearly go beyond a purely payment system and, therefore, will be the subject of such additional requirements.

- These additional requirements will relate in particular to the distribution of capital (for credit, market and operational risks), concentration of risk and liquidity, as well as the management of the Libra reserve.

- Additional requirements will be based on generally accepted standards for similar activities in financial markets and should reflect the scope of the project. For example, for similar banking risks, banking regulatory requirements will apply. Thus, the license of the Swiss payment system will allow you to combine the strengths of banking and infrastructure regulation.

A prerequisite for obtaining a license as a payment system would be that the revenues and risks associated with the management of the reserve are fully covered by the Libra Association, and not by the providers of funds - stablecoin holders.

The planned international scope of the project requires an internationally coordinated approach. In particular, the definition of requirements for reserve management and management, as well as for combating money laundering, should be developed in the framework of international coordination.

Matters beyond supervisory law.

A possible licensing procedure under Swiss supervision legislation will only begin after FINMA receives a specific licensing application. In accordance with its practice, FINMA will not provide public information on the status of any existing licensing procedures and will not speculate on when it may be completed.

Other issues raised in the context of the Libra project, such as those related to tax law, competition law or data protection law, are outside the scope of supervisory law and therefore are not within the competence of FINMA.

In the next message, we will analyze in detail the documents posted below.

Source: FINMA.

PlusToken crypto wallet, which proposed storing almost all the world's leading cryptocurrencies and making a profit on their investments, can claim the status of the largest fraudulent project in the history of financial pyramids. Users cannot withdraw the equivalent of $ 3 billion from their online wallets.

PlusToken, an international decentralized crypto project of the multi-currency online wallet PlusToken, was launched in April 2018. The project was positioned by the creators as developing a team from South Korea using Samsung technology. The marketing campaign was launched in Asia (China, Japan, South Korea, Myanmar, Vietnam), a number of European countries (Germany and the UK), as well as in Russia.

In addition to the ability to store almost all the world's leading cryptocurrencies in the wallet - Bitcoin, Bitcoin Cash, Ethereum, XRP, EOS, IO, Litecoin, Doge and Dash, users were promised a fairly significant return on investment of their cryptocurrency assets - from 6% to 19% per month.

According to experts from Elementus (USA), a company that creates and promotes fintech solutions based on blockchain technology, over 800 thousand Ethereum cryptocurrency depositors have used PlusToken wallets for the entire existence of the project and stored about 10 million ETH on them.

According to the Special elaborations department of the Technopark of St. Petersburg, the PlusToken pyramid attracted about 200 thousand bitcoins, 789 thousand ETH and 26 million EOSIO. All these funds went to wallets controlled by the PlusToken team.

However, interested media write, these estimates are very preliminary, and the amount collected from investors may be much larger. So, experts say, only the Ethereum address of PlusToken stored more than 781,000 ETH, which, in terms of the exchange rate, amounts to more than $ 234 million.

The capitalization of PlusToken at the top of trading reached $ 17 billion. PlusToken was accused of fraud in March 2019, when Chinese police raided PlusToken's offices in Hunan (PRC). The head of PlusToken's Chinese unit, Chen Bo, as well as five other Chinese citizens related to the cryptocurrency wallet project, have disappeared and are on the wanted list.

Problems with the withdrawal of assets from PlusToken wallets began in late June 2019. The Chinese investors were the first to suffer, as evidenced by the entries in the PlusToken support service, which did not respond to calls, and, starting on June 29, the PlusCoin platform token exchange rate remained at the same level ($ 139,237) without hesitation.

On June 29, according to the Dailypost, six Chinese citizens suspected of participating in an Internet scam were arrested on the island of Vanuatu at the request of the Chinese authorities and deported back to China. It is possible, the publication reports that they are precisely the key figures in the PlusToken team.

To date, it is known that the organizers of PlusToken have already managed to cash out part of the bitcoins through crypto exchanges Huobi Global (Singapore) and Bittrex (USA). In particular, the Singapore cryptocurrency exchange got almost half of the funds raised for wallets - about 4.3 million ETH. The other part was transferred to one of the cryptocurrency wallets.

It was possible to track the funds of defrauded investors thanks to the cryptocurrency transaction analysis service created in the Special elaborations department of the Technopark of St. Petersburg.

According to experts, the obvious signs of the financial pyramid of the PlusToken project were tracked from the very beginning. Among them, the referral system of distribution of funds offered to investors, which is characteristic of financial pyramids and MLM marketing, and unjustifiably high monthly profit (from 6% to 19%.). The PlusToken fraudulent scheme is already being compared with the principles of organizing the BitConnect closed cryptocurrency platform. It entered the market through an ICO at the end of December 2016, and by the end of 2017, its BCC tokens have established themselves as one of the fastest growing cryptocurrencies. She guaranteed her investors a 40% return for a month. According to CoinMarketCap, in a fairly short time, BCC capitalization reached $ 2.6 billion, and the ATH rate was $ 460. But in January 2018, BitConnect unexpectedly for its investors announced the closure of the exchange and the lending program, notifying them that they would continue to provide services as a wallet, but at the same time change the format to a media platform. Immediately after this announcement, investors fell into a panic, and the BCC rate lost 96% of the cost.

It is interesting to note that in Russia until now, users have access to the PlusToken mobile wallet, which can be downloaded from the GooglePlay and AppStore stores. For the storage of their crypto assets in the wallet, Russian investors are still guaranteed a profit of 6% to 19% monthly. True, the “blog” section of PlusToken’s Russian site is currently inactive (or deleted), and all consultations are invited to receive via WhatsApp.

Source: IT News.

On September 3, 2019, in St. Petersburg, specialists and residents of the SafeNet RIC of the St. Petersburg Technopark, together with the Russoft NP and Bee Pitron, held a presentation session for the Indian delegation of Infinity Group. The key focus of the event was the creation of a platform for interaction between participants in the Russian-Indian market.

As part of the meeting, Igor Bederov presented the developments of the Special Development Department for a distinguished guest from India. Mr. Darbari drew particular attention to existing developments in the field of cryptocurrency transaction control and crime prevention. According to him, in India, up to 20% of the population and a significant amount of low-level crime use cryptocurrencies. In addition, the country has not resolved the problem of relapse in previously convicted criminals.

Back in July, in the format of the Second Russian-Indian strategic dialogue, in order to establish a technology transfer, an agreement was signed between RUSSOFT and Infinity Group. As a result, the ICT Center of Excellence project was launched in India, designed to establish cooperation between the two countries in the direction of business development and international assistance to SMEs.

The delegation of the Infinity Group, headed by Mr. Darbari, flew to Russia to meet with potential recipients of investments and to transfer technology from Russia to India under the “Made in India” program.

After a tour of the engineering center, SafeNet residents presented their projects in the areas of Artificial Intelligence, Internet of Things, cyberphysical security, blockchain, virtual and augmented reality. The parties discussed the situation on the international high-tech market and considered options for potential mutually beneficial cooperation. ICT experts emphasized the relevance of Russian solutions to the market of India and other countries and discussed the possibility of implementation.

Source: Engineering center SafeNet.