FirstCoin Club under police investigation, reports exchange
FirstCoin are set to have their FRST altcoin dumped from the LiveCoin exchange, following the revelation the company is under police investigation in “at least 2 countries”.
BehindMLM reviewed FirstCoin Club in mid-2017. Based on FirstCoin Club’s business model, we concluded it was little more than another Ponzi points altcoin launch coupled with pyramid recruitment.
According to LiveCoin’s February 16th press-release, FirstCoin Club’s FRST is being delisted due to
requests from police authorities from at least 2 countries at this moment and 1 open case.
As to specifics regarding the requests and confirmed investigation, LiveCoin state they’re ‘not authorized to disclose any details of requests or case‘.
A secondary reason provided is “reversed transactions”.
We’ll try to explain in plain. If you control the network of any coin, you can send a transaction to recipient (to Exchange, for example), wait for processing and crediting of this transaction and then make a fork to remove this transaction from blockchain.
Thus you double your money, because your account on Exchange still has this transaction.
FRST was 99.9% pre-mined, meaning what hasn’t been flogged off to FirstCoin Club affiliates are still held by the company’s anonymous owner(s).
The same individual or individuals control the FRST network, meaning they are likely behind the reverse transaction shenanigans.
After an initial Ponzi points pump to $16 in October, 2017, FRST has dumped to its current value of less than a dollar today.
According to CoinMarketCap, LiveCoin accounts for 38% of FRST trading. The YoBit exchange accounts for the remaining 62%.
Whether YoBit has also fielded enquiries from authorities regarding FirstCoin Club and FRST is unclear.