Cardano Foundation Issues Communiqué on Suspicious Activities in Japan


The Cardano Foundation has today issued a communique that a suspicious company, BTCNEXT is trying to rake in investments by claiming contact with the foundation.

July 9 2020 | AtoZ MarketsThe Cardano Foundation — the organization behind major cryptocurrency Cardano (ADA) — warned that a suspicious firm is trying to rake in investments by claiming it has contacts with the foundation.

Cardano Foundation warns its community on suspicious activities in Japan

On July 9, the foundation tweeted that someone claiming to be from or contracted by Caribbean crypto exchange BTCNEXT professes to personally know the Cardano core members as a way to reassure that investments will be safe.

It is unclear whether the claimants have a connection with BTCNEXT in any way. AtoZ Markets has reached out to BTCNEXT for comment but is yet to respond.

Nevertheless, the Cardano Foundation clarifies that it has no links with the Caribbean-based crypto exchange:

“Neither the Cardano Foundation nor any of its ecosystem partners are in any way associated with BTCNEXT, and they are also not our partners of any sort.”

Furthermore, the Cardano Foundation advised the community to be wary of any suspicious claims and conduct thorough due diligence. It also urged individuals not to send any data to third parties that claim partnership with its team or other entities in its ecosystem, as they “will never ask you to send your funds (assets) to us.”

Cardano Foundation address a purported ADA scam in China

In the past few days, you’ve likely seen the video seen below. According to the individual that shared it, the video shows a group of “farmers” being shilled Cardano and ADA.

Michael “Boxmining” Gu, a cryptocurrency Youtuber and podcaster, corroborated this. Gu added that caveat that the farmers in the video are rich, He reached this conclusion due to the Range Rovers sitting in the background of the video.

Notably, the individuals speaking at the front are wearing Cardano t-shirts and are using an image of Charles Hoskinson.

Most of Crypto Twitter has recognized that this is a scam with no affiliation with any official parties related to Cardano. Yet to assure that there are no confusions, Hoskinson and the Cardano Foundation have clarified.

The @Cardano Twitter handle, operated by the Cardano Foundation, clarified on Jul. 3 that the meetup is entirely unaffiliated with them:

“This is an unaffiliated 3rd party meetup. We’re glad to see there’s interest in Cardano all over the globe, but please beware of scams! If you’re interested in a list of approved meetups, you can always check our forums.”

Charles Hoskinson respond to seeming ADA scam

Hoskinson doubled down on this in a 20-minute video response entitled “On Scams and Illegal Activity.” 

“You work five years on something, you put your heart and soul into it, you just have a giant event that 10,000 people attend. Then you see floating around Telegram, Twitter, some video — some scammers in China using my face, our company’s logo, the Cardano Foundation’s logo who have absolutely no affiliation with us.”

According to additional information shared by Michael Gu, the video is about a group known as the “Asian Dragons,” or “AD.”

The crypto content creator says that the group is “known for ultra-aggressive marketing and Multi-level marketing (MLM) schemes.”

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