Exposing Tkeycoin DAO

Part № 1

Oh! The long-awaited disclosure of the facts, which have been waiting for so long.

The contents of the first part:

  1. Reception in Fiat currency-Scam or something more?
  2. Reception in cryptocurrency, is it safe for you?
  3. A little bit about the outcomes. ICO;
  4. Banks, scammers and schemes of work;
  5. Payment system;
  6. Payeer and what you need to know about it.

In this publication, we will analyze the issues that remain behind the scenes, or users just do not think about them, and this is normal, because the theme of business, and especially related to blockchain and cryptocurrencies for everyone is quite new.

If you are really interested and you want to look at things from the other side, then this article is for you, if not, then do not start :) It will be very long and informative, we will consider a lot of issues that have long worried the public.

Enjoy reading!

“There are two truths, but the truth is one»

During the appearance of the ICO, a lot of templates and stereotypes appeared, how it should be held and what should be paid attention to. More spell check-lists, manuals, how and what should be. But why? Why is there an imposed opinion that should become a Bible for the project? The answer is simple-it is so convenient to judge.

But! It should be remembered that any business, including ICO, is a set of previously laid down rules that appeared before the appearance of the crypto currency in our lives.

Why does a company become a Scam if it accepts currency (rubles, dollars, euros)?

Let’s examine this issue together. Today, the common currency (Fiat) is considered to be recognized by people and is used in all spheres of economic activity.

Every day we use it for payment in shops, cafes, restaurants, buy cars, apartments, delight loved ones, get paid in it, in General, use it wherever you can apply.

Banks are constantly processed millions of transactions worldwide, the Corporation concluded a large contract and is getting familiar to us from Your currency to their accounts — and that’s fine.

This is something that has already been established in our lives, both at the level of the law and at the level of perception by civil society.

Working with Fiat currency, we can identify the recipient and the sender, as well as find the beginning and end of the chain of transactions. Currencies are regulated by various regulatory agencies (the Ministry of Finance, the Federal tax service, the police, the Department for combating economic attacks, the Central Bank, regional banks and other subordinate bodies).

Whatever You business is not organized, than to not do it, in any case, Your monetary transaction or otherwise under the control.

Now let’s look at how this is applied in ICO.

A certain group of people organize a project with front persons (photos), accounts in social. Networks and other dummy arguments.

A group of scammers creates a template or orders from a third-party company (what weight) the production of a token code according to the standard for example ERC-20 (Ethereum), publishes its 10–20 line code on github and positions itself in what has a basic MVP, and also accepts only in the ETH (ETHEREUM) cryptocurrency.

Satisfied and stunned users send their hard-earned ETH cryptocurrency to the “pseudo project”wallet. After that, the ICO ends.

Options outcomes:

1. In the best case, really this token gets on the exchange, just keep in mind that one of the most corrupt and not status. The project simply pays from the collected budget money for the accommodation and the token begins to bargain allegedly.

All, at this stage there are no developers, no further token life and most importantly, no growth and there can be no question.

2. In the classic case, after collecting funds, the project site is disabled, social networks are removed, users remain with their cryptographic wallets filled with”papers”.

And most importantly, the project made money in bitcoin, not in FIAT! Now, how to find the founders, is the question. So as to identify the receiver You will not be able, and look for certain.

The Scam works quickly

Fraudsters do not make sense to delay the time, because you need to act fast, the goal is one — it’s your money. Hours on the ICO tracker drip, bonuses attract, people buy.

Like and the team is, but still accept bitcoin, and MVP I have seen on Github — just super.

This is a kind of ”scoring“ — used by banks customer evaluation system, which is based on statistical methods.

When you come to receive the credit in Bank, you answer questions, already on the basis of your answers the system of points then if you gathered high level accumulates, to You issue the credit if average, then to You security service will call and will ask additional questions if low, then certainly to you won’t give out the credit.

In the case of ICO, the user is already built on stereotypes and patterns in the head collects points about the project. There is nothing wrong with this, only patterns and stereotypes prevent us from conducting an objective assessment.

▪ The project has published a team — excellent (Although);
▪ The project has not published a team is bad (Really);
▪ How the project works is pure truth.

Both opinions are true, but the truth is many other factors that show and open the project.

And now again back to the reception of Fiat (normal) currency to open the picture in a broader sense.

To accept Fiat currency You will need:

1. Registered legal entity:
• Accordingly, a live Director and founder (may be in one person).

2. After opening a legal entity, you will need to open a current account with the Bank.

•After the actions of the regulator in 2015–2016, banks may be wary of customers. Inspections have become more requested documents, clarification of activities became wider. It is checked as well as firm: the Legal address-whether it mass, whether many firms were registered on it, whether there were firms which participated in illegal activity on this address. And the individual — availability of credit, availability of other legal persons, the relationship of these entities with other legal. persons and the presence of conflicting actions, whether the Director or the founder and so on.

Along with this, the check is at the level of the tax (tax) at the time of registration.

Don’t rush to conclusions, we can now say: Yes, everything is simple, and the person can find the Bank. And it’ll be true, too, but we’ll get back to that.

3. After opening an account, one of the most difficult — is to connect the payment system to receive funds for your activities.

Why not just?

First, each payment system has a reputation, has its own rules, there are regulations that do not include HIGH-RISK business, these guys do not belong here.

When you open the payment system, you still go through a lot of checks, in addition, to agree on any kind of activity, you need to find the legal ends and points of contact.

Your reputation and your past and present will play a big role. And of course the activities.

Consider this all as an example to make it easier for you to understand.

To accept Fiat money, a group of scammers need to work hard:

▪ Find a quality fake face;

Most often, they are called “drops” is a shill designed for intermediate goods receipt/Bank transfers/parcels/ or person used as a legal representative Jur. persons, etc.

▪ Register a legal entity or buy a ready-made one;

▪ Open a Bank account.

We must not forget, even if you bought a legal entity with a current account, brought to the Bank already its Director, You have no guarantee that the Bank will continue to work with you. By law, the Bank is obliged to change the Director, but You can just hint that you will be blocked if the Bank does not like something-it’s a big risk.

Suppose scammers have found a quality Drop (shell Director) for N-th sum. Bought the company, opened a checking account, connected the payment system.

In this scheme, there are several weak links: the Director and the Bank account.

Bank account fraud in fact operate, they have no transactions with counterparties, payment of taxes, salaries, etc. Yes, you can reference the new firm and so on, but the firm works mainly on reception. And at any request of the Bank, the fraudsters will have to provide certain documents to respond to their requests. In this case, the money is at great risk. It’s one.

Second, the money must be withdrawn. Accordingly, the scammers need to build a competent chain of cashing out funds that every year becomes more and more difficult, as regulators have more power and access.

At the moment, the scammers run the risk of unfavorable outcome for them to get a few articles — fraud and legalization (laundering) of money.

If there is a weak link in the chain of” cashing out “of funds, the money may” get stuck “ on other accounts, which is extremely unprofitable for fraudsters, plus working with banks even in legal activities sometimes has the risk of getting blocked.

Further, since the scheme is already involved a large number of persons from the regulatory body will appear a large number of clues: telephone conversations, correspondence, messengers, IP addresses, contacts with the Bank Director, payment systems, e-mail correspondence and so on. The scheme of disclosure of groups of scammers we will not disassemble. — — This can be to devote several books :)

But! Someone can say that everything can be transferred to offshore and work with offshore banks and questionable payment systems. Yes it is possible, but in any case, contact the people who organize and coordinate the purchase of the same legal.faces can be set.

Fraudsters are easier to diversify risks and most importantly their future money. Logically, accepting bitcoin for Scam is a perfect way.

Let’s draw some conclusions and continue.

1. We see that acceptance in Fiat currency is quite risky, labor-intensive and time-consuming than acceptance in cryptocurrency.

2. Work through offshore labor-intensive. Moreover, no major investor will work with an offshore company, especially the classic one — Belize.

3. Working legally through a Bank is stupid and risky for a crook.

This leads to a simple conclusion: acceptance in Fiat currency, just the indicator that says about the legal activities of the company.

They use payment systems, and even Payeer, well, just Scam!

As we mentioned Above, to open a payment system, you will need to perform a certain number of actions, as well as to pass a number of checks, both from the Bank, from regulatory authorities and from the security service of the payment system itself.

Therefore, before drawing conclusions about the project, think carefully and remember the above facts in this publication.

We have a customer focus and understanding of doing business. Given that our goal is to make the market understandable and accessible, it is advisable to start with the convenience of the customers:

▪ We have officially been working since 2015 with the payment system for legal entities from “YANDEX” (please do not confuse with Yandex. Money), cooperation strictly according to the contract. The system is focused on the Russian and CIS audience, the Commission for reception pays the company, not users.

▪ With regard to Payeer. It is important to remember, and most importantly to understand that there are 2 types of accounts: User (User) and Business (Business).

The user is an individual. The user can both go through verification and work in anonymous mode. But, depending on its choice (verification or anonymity) it has a number of restrictions and about any payment gateway (merchant) speech can’t be.

An ordinary user does not have an automatic receipt of funds, as we used to see in online stores. We will not deny, and even more so to argue that when using a regular account for accepting money, there are risks. But this is a normal USER, not a business account.

It turns out that to automatically accept and set up payments, you need to pass the verification of the legal entity. Go through a number of checks, provide documents. And this You will have a 4th check, if you count (Tax, Bank, 1st payment system, and now Payeer).

In our case, we have a Business account that has been successfully operating since 2016. All documents are confirmed, all checks passed. When you connect a new type of activity, you go through an additional check, which we did again for the 5th time.

Continued in the 2nd part of the article.

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Official TKEY blog in Medium. Infrastructure for the financial ecosystem

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