Enigma Will Refund $500,000 To ICO Investors Who Got Scammed

Even though it is yet to officially open its crowdsale, Enigma would have to refund close to $500,000 to prospective ICO investors who were misled by scammers. The company confirmed this some days ago. Enigma’s social media accounts were hacked and members of their community were misled to make contributions into false wallets.

The hacker compromised Enigma’s slack, website and some of its mailing list and got members of the community to send ETH to a wrong Ethereum wallet. It is believed that the attacker gained access to these accounts due to the fact that Enigma’s CEO Guy Zyskind had not changed the password to his previously hacked email account.

Social mediums such as Slack, Telegram, Twitter and other communication channels are known to be quite popular with the cryptocurrency and ICO communities – this therefore has some drawing power for scammers and hackers who are frantically snooping around in order to make some quick bucks. Even though Enigma had earlier warned would-be-investors not to send ETH to any wallets before its official ICO opening on September 11th, it was not enough to stop people from falling for the trick of these scammer(s). The Enigma team has however taken it upon itself to help those who lost their coins get it back. The CEO posted this via Medium;

So we are taking responsibility. We are deeply sorry for the pain experienced by those who lost funds to the scam attempt, and we want to make sure that no one in our community that was a victim to this well-coordinated phishing attack is financially hurt. We will restore funds to everyone that lost money in this recent scam attempt after our token sale concludes. We’ve already been in direct contact with some of the affected parties. If you lost funds and have not yet contacted us, please reach out to [email protected] with information about yourself and your transactions. We will work with our community on a case by case basis.”

A cross-section of the community believe that this move by Enigma is laudable, especially since it was more or less their lack of due vigilance that led to the hacking.

Enigma raised about $20 Million in its pre-ICO and thus should be able to meet this refund bill without breaking much sweat. The main ICO aims at adding $ 10 Million to what they have so far realized. The project is being run by MIT students and seems to be generating much interest in crypto-investment circles.

The project’s major focus is the creation of hedge funds based on cryptocurrency blockchains. It will be a transparent system of operations such that record can be viewed on open ledger.

There has been an increasing call for ICO managers to pay more attention to the security of their platforms and systems as a couple of ICO campaigns have encountered hacking issues in recent times.


1 Comment on "Enigma Will Refund $500,000 To ICO Investors Who Got Scammed"

  1. copticryptic | August 28, 2017 at 2:39 pm |

    This hack makes no sense. How does the CEO not change the password to his email after he has had it recovered from a hack? so he maintains the same password the hacker used and he gets sensitive information in the inbox of the email address? This is highly suspicious!

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