As scammers continue to innovate on ways to dupe crypto enthusiasts, they often tend to represent the well-established crypto and blockchain companies to make the scams look legitimate. The Cardano Foundation and its founder Charles Hoskinson is the latest victim in one such scandal in China.
Throughout last week, a video uploaded by one twitter user named CaoYin circulated the internet. The video showed a group of people pretending to represent the Cardano Foundation, explaining something to what a group of people, which according to the individual who shared the video, are “farmers”.
The most notable thing in the video was that the speakers and the other team members were all dressed in Cardano-branded clothing and also had an image of CEO and founder Charles Hoskinson on the side. Just a few hours after the video went live, the online crypto community was quick enough to acknowledge that this wasn’t in any way related to the Cardano Foundation.
Not affiliated to Cardano
There was also further clarification from the foundation itself, where it warned users to be aware of scams, stating that the meetup shown in the video is not affiliated to the company. The team wrote:
“This is an unaffiliated 3rd party meetup. We’re glad to see there’s interest in Cardano all over the globe, but please beware of scams! If you’re interested in a list of approved meetups, you can always check our forums.”
Soon after, Hoskinson himself posted a 20-minute video on YouTube titled “On Scams and Illegal Activity” to express his frustration on this matter. In the video the CEO clarified:
“You work five years on something, you put your heart and soul into it, you just have a giant event that 10,000 people attend. Then you see floating around Telegram, Twitter, some video — some scammers in China using my face, our company’s logo, the Cardano Foundation’s logo who have absolutely no affiliation with us.”
“Think about the mess that leaves, because when those people figure out that they’ve been defrauded they don’t go to the scammers, they come to us, and complain to us, and say why did you do this? And then we have to unravel this whole thing,” he added.
While there has been no proper translation of the video, according to crypto YouTuber Michael Gu, also known as Boxmining, the supposed “farmers” look really “rich” as the video shows a number of high-end luxury vehicles parked in the background.
The YouTuber shared some additional info on the matter stating that the people pretending to be representatives of Cardano are supposedly a group that calls themselves the “Asian Dragons.” He further added that the group is “known for ultra-aggressive marketing and Multi-level marketing (MLM) schemes.”
Scammers impersonating the well-established crypto companies isn’t something new to this space. As The Daily Chain reported, in one of the scandals, the crypto community has exposed a YouTube account pretending to be Ripple CEO Brad Garlinghouse, to promote a fake airdrop scam.
The incident even saw Garlinghouse lash out at for not taking any action even though Ripple had pointed out at least 25 accounts that were advertising these scams.
As of now, it is yet to been seen if the Cardano Foundation will take some kind of legal action against the supposed group of scammers.