Ethereum-based startup Confido, a little-known project that recently raised $374,000 in an ICO from investors in exchange for CFD tokens, has seemingly vanished from the internet, as all its social media profiles and website have been taken down. Investors are now looking into the situation, which points to a potential exit scam.
Confido pitched itself as a blockchain-based app that allowed for smart contracts that acted as an escrow between buyers and sellers during transactions. Per our sister site Hacked, among one of the first to report on the incident, the three-day ICO was held earlier this month.
Their CFD tokens reached as much as $1.2 per token, but their value soon plunged as the company revealed it was facing legal issues. As Hacked reported, a post made by the company founder and CEO, Joost van Doorn, stated that Confido was facing legal trouble due to a contract, it read:
"Thanks for always standing by us. We have achieved some incredible things these last two weeks, and the crypto space is beginning to notice us. However, we ow you an apology. Right now, we are in a tight spot, as we are having legal trouble caused by a contract we signed. We signed the contract with assurance from our legal advisors that there was minimal risk and it would not be an issue. I can't and won't go into details, but he was wrong. It is a problem."
However, things went on to take a turn for the worst, as the company deleted its Twitter Facebook, Medium, and Reddit accounts. Archived pages are still accessible, including one of the company's Medium post.
Concerned investors on Reddit started investigating Joost van Doorn's claims and situation, but soon found there was barely any trace of him online. A cached version of Confido's website – now taken down – claims he worked at eBay, PepsiCo, and Zalando. The LinkedIn profiles of the company's team also looked fake, as they all had years of work experience, but little to no connections.