Seele ICO Compromised through Telegram Channel

As ICOs accelerate in number, so do scams where even more valuable digital assets get spirited away.

Weekends are a risky time for ICOs, when lowered vigilance is the perfect ground for a quick phishing scam. Now, it was the turn of Seele ICO, where reportedly the heist was the work of team members.

The usual approach is to offer social media participants a promise of a special deal, or a private sale of extra coins.

In the case of the Seele scam, the impostors asked for large sums, about 100,200, or 500 ETH. The sum they managed to gather exceeds $2 million at current ETH prices. Some of the ICO backers went through pools, and reportedly one pool got caught in the scam with more than 1,400 ETH.

The only protection in case of potential ICO scams is to only follow official communication channels. The Seele ICO had not even started its pre-registration when the private sale links appeared. Because ICO investors are usually interested in special deals and private sales, such scams are becoming more prominent.

Previously common phishing scams distributed through Slack channels have included an invitation to cloned MyEtherWallet links.

The latest scam is the most significant in the past month, as the ICO climate is worsening. Fewer projects are managing to collect their target sums, and in the meanwhile, scam ICOs or attacks are becoming more active.

Scam ICOs have included Prodeum, taking away just $11, but also Finacoin, which was promoted by John McAfee and the losses have not been estimated exactly. The Benebit ICO also went through a disappearing act with around $2.7 million.

ICOs facing phishing scams include Bee Token ICO, as well as Experty.

In the case of Jibrel Network, no JNT tokens were lost, only due to targeted involvement of the developer team, which moved the tokens quickly from the compromised wallets.