ICO frauds are on high. Linda Healthcare ICO is being looked at for committing a scam. Security Commissioner in Colorado has recently sent a desist and cease notice to the office of Linda Healthcare, located in Florida.
In the last couple of years, considering the number of ICO scams that have been unearthed, ICO market, on the whole, is looking for the trust of the people. Reports are to be believed that about 81 percent ICO launched in 2017 were fraudulent.
Linda Healthcare launched its LNDA token advertised that the users will be able to buy Linda Health Insurance which can be bought with the help of AI using the Blockchain Technology. But the company has been alleged that it didn’t make the consumer awareness about the risk which is associated with the buying of tokens. It has resulted in users being exposed to a risk of losing their investments.
LNDA also stated that their offer is very similar to the crowdfunding campaign, but recently a judge stated that the claims of the company are not accurate. The offer which is presented by the company resembles more to an investment contract. An investment contract is different and has different consequences, legalities, and liabilities.
Judge Norwood, who gave the ruling, stated that the scheme in which someone can invest in any enterprise made to be believed that he or she can attain profits through the investments made from a third party investor or promoter.
The bottom line of the judgment was that the ICO of Linda Healthcare is very risky. According to a report published in Bitcoin Exchange Guide, the cease and desist meant to stand for a long-term given at any time when a consumer pays money into a fund, from which a return is expected through an investment and not through crowdfunding.
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