’s Complete Guide to ICOs: Timothy Benson explains everything companies need to know about them

ByRichard C. Sloan

Apr 18, 2022

Cybercrime Specialist

ICO has been hugely successful as a popular method of raising funds to create new digital coins. But the platform also attracts scammers.

With the exponential growth of ICOs by the public, it’s no surprise that ICOs have been used to fund scams and deceive investors.

—Timothy Benson

SOFIA, BULGARIA, April 18, 2022 / — Initial Coin Offerings (ICOs) have opened up new avenues for investors in blockchain businesses. According to reports from major websites, in the third quarter of 2017 alone, ICOs raised over $1.3 billion for cryptocurrency companies. This figure is five times higher than funds raised through venture capital., a cybercrime service for victims of online scams, says: “With an exponential growth of ICOs by the public, it is no surprise that ICOs have been used to fund scams and deceive Investors”.

Adding to the statement, crypto theft investigator Timothy Benson explains, “Not all projects are fake or fraudulent, but all the hype around ICO is worth investigating the platform for a potential disruption. There are several variations of ICO scams prevalent online. Therefore, a complete and detailed study can be decisive when the objective is consumer protection. »

Types of ICO scams:

◉ Exit Scam is a fraudulent operation organized by unscrupulous crypto promoters who collect funds from investors for an ICO and disappear. 2018 saw over $100 million lost in ICO exit scams.
◉ Bounty Scam: Another common ICO scam, the Bounty scam fails to pay the financial rewards promised by promoters for PR activities.
◉ Exchange Scam: Developers trick investors into putting money into a fake exchange.
◉ Whitepaper plagiarism scam: scammers copy the whitepaper of genuine ICO companies and decide to launch similar projects under a different name.
◉ Scam URLs: Criminals create fake websites that match ICOs and ask users to deposit digital coins into a corrupt wallet.

How to identify the ICO scam?

There are several ways to identify ICO scams and sketchy scammers:

◉ Read the white paper: To avoid ICO scams, read the projected white papers related to a scheme and get in-depth information. The white paper typically outlines business strategies, objectives, background, concerns, financial models, SWOT analysis, and estimated timeline for project completion. Investors should avoid associating with companies that do not publish white papers.
◉ Understand the team: It is recommended to thoroughly research the individual team members of said project. Users should understand administrative units by checking their business profiles. Go through social media platforms to match credentials before investing in the project.
◉ Assess promise intensity: White papers are a great source for analyzing company intent. Anything that seems out of place should be reported. Also, check the company profile on platforms like Google, Crunchbase or Comparably.

What to do if you are the victim of an ICO scam?

Cybercriminals are very convincing. They can reach their potential targets through email, SMS, SMS, social media apps in hopes of stealing personal information and ultimately money.

And they are extremely good at what they do. However, there are a few things to pay attention to if someone is scammed in an ICO fraud.

There are two ways someone could have been targeted: a) individuals sent cryptocurrency to scammers or b) shared personal information.

When sending money to scammers:

◉ Contact the bank and ask them to stop all unauthorized transactions. Tell them about the fraudulent activity. Request the cancellation of transactions.
◉ Ask about unauthorized debits or withdrawals.
◉ Contact local police or nearby law enforcement.
◉ Connect with a bank transfer company (if the money was sent by bank transfer).
◉ Report the fraudulent transfer to the company behind the money transfer app (if the money was paid through a money transfer app)

When someone has shared personal information with scammers:

◉ Continue to monitor credit card activity.
◉ Plus a computer/device off the internet.
◉ Create new password for apps on phones.
◉ If possible, reset computer software and install new updates.

How do I report an ICO scam?

Reporting cryptocurrency or ICO losses applies different methods in different situations. For example, in the United States, the most common crypto scams are usually listed on lists of popular crypto scams online. Every fraud in the state will fall into three categories: 1) Loss of Victim, 2) Loss of Theft, and 3) Loss of Investment.

The first and main step is to report the matter to the local police or law enforcement agencies in each case. When someone is robbed of their money with the criminal intent to cause financial harm, reporting the matter is the only approach to getting the help they need.

Timothy Benson, Crypto Asset Recovery Specialist at, said, “The right way would be to treat the lost cryptocurrency and ICO scam as a loss of capital investment and get a report from local law enforcement, SEC, or financial crime investigators. . The information will be used in IRS audit protection.

How to get money from an ICO scammer?

Gather evidence: Gather as much information as possible before you do anything. Get to know the company correspondence. Track their advertisements, etc. Any screenshots are helpful to the court. Stack the necessary evidence against the fraud of ICO companies or individuals. Another thing to do is to keep the evidence list and their white paper as a roadmap. The goal is to project how the company has failed to deliver on its promises.

Submit a case: The next step is to submit the case according to the rules and regulations of the country. The tricky part is knowing who to hold accountable. For this, get help from the best crypto recovery services. The team will analyze the market and do some quick research on how to convict ICO scammers.

If victims of ICO fraud want to know more about good crypto recovery services, read online reviews and do a background check. Based on several site reviews, is a recommended name in the field.

About is the world’s leading fund recovery company providing fund tracing and recovery services to victims of online scams, including romance scams. He works around the clock to help consumers and businesses around the world who are facing or are at risk of facing financial scams online. For more information, please visit

Peter Thompson
+1 917-920-6613
write to us here
Visit us on social media: