Home Crypto News Nearly a Year After Libra’s Launch, Fake Libra Token Scams Persist

Nearly a Year After Libra’s Launch, Fake Libra Token Scams Persist

14 min read

The creation of the Libra Association lit a hearth world wide: for the primary time, lawmakers appeared to be taking cryptocurrency significantly; many thought that Libra could be crypto’s “killer app.”


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Nearly a 12 months later, nevertheless, the way forward for Libra appears fairly totally different than it did final June. The Libra Network initially deliberate to have the community dwell in the course of the first half of 2020, which has already almost come and gone; moreover, Libra launched a second official model of its whitepaper in April with an operations mannequin that appears to be fairly totally different than the unique.


For as many modifications that the Libra venture itself has gone by way of, nevertheless, evidently one factor stays fixed: the second that Libra was born, scammers have designed fraudulent funding schemes involving the sale of faux “Libra tokens” which can be unaffiliated with the precise Libra model.


Dante Disparte, Deputy Chairman and Head of Policy and Communications for The Libra Association, instructed Finance Magnates that the Libra Association is constantly working to close the scams down.


Dante Disparte, Deputy Chairman and Head of Policy and Communications for The Libra Association.

“As we become aware of these sites, we work diligently to address them,” Disparte mentioned. “We respond to inquiries concerning the validity of these pages, indicating that the only official website is Libra.org.”


Indeed, “we are still in the early stages of this project and work to address issues like these as they arise,” he continued. “We encourage people to report sites they deem as scams, by alerting us at Security@Libra.org.”


But are scammers working extra shortly than the Libra Association–or Facebook itself–can reply to?

Fake Libra scams persist


Reports of those fraudulent Libra token scams seem to have appeared way back to July of 2019, one month after the Libra venture formally launched: the Washington Post reported on July 23rd of 2019 that it found a dozen of those scams on Facebook itself, in addition to a few of its affiliated platforms.


“Roughly a dozen fake accounts, pages and groups scattered across Facebook and its photo-sharing app Instagram present themselves as official hubs for the digital currency, in some cases offering to sell Libra at a discount if viewers visit potentially fraudulent, third-party websites,” the publication mentioned.


Then, in January, Finance Magnates reported on one other of those scams: @CoinLibraToken, a since-disappeared Twitter account that was trying to conduct a faux preliminary coin providing (ICO).


Sources accustomed to the matter have additionally instructed Finance Magnates of “call-center” fashion scams wherein callers declare to be promoting Libra tokens to would-be customers; nevertheless, FM was unable to substantiate this.


In any case, new iterations of those sorts of scams proceed to pop up: whereas the Libra rip-off panorama doesn’t seem like as populated because it was up to now, coming into the phrases “buy Libra token” into Google and Facebook revealed a number of fraudulent platforms which can be claiming to promote Libra tokens or to be affiliated with the Libra community in a method or one other.

Fake Libra tokens on seemingly fraudulent exchanges

Many of the scams appear to be concentrating on unbanked people within the creating world–the identical group of those who the precise Libra community is meant to assist.

“UPLibra”, for instance, has each a Facebook web page and a Twitter account promoting its “mission”, which claims to be “dedicated to establishing a Libra OTC buying and selling platform, offering quick, safe and invaluable Libra trade providers to customers everywhere in the world.


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While the platform is “briefly closed” to new registrants, and doesn’t appear to be explicitly promoting the sale of Libra tokens, the platform does make different claims that make it appear as if it does have some sort of Libra “token” that it’s distributing–and probably promoting–to its customers.



The header picture for the @UpLibra Twitter account.


For instance, on the UPLibra Twitter account (which has greater than 17,900 followers), a put up claims that “we were attacked by malicious and invalid registration, which [caused] the payout amount increased to 232.957 Libra crazily. Don’t worry. We are blocking these fake accounts and it will back to normal. (sic).”

Additionally, a Youtube video entitled “UPLibra.io Earn up to 100000 Libra coin Free” by consumer Mohankumar Chidambaram seems to depict the “inside” of the UpLibra platform, the place “Libra” tokens seem like saved.

Finance Magnates reached out to UPLibra.io through Facebook concerning the nature of its enterprise, however didn’t hear again earlier than press time. Comments will probably be added as they’re acquired.

Other scams exist at standalone web sites


Another of those alleged scams appears to be sitting comfortably at OfficialLibraCoin.com, the place customers are instructed in grey-and-white lettering that they will purchase Libra cash by “click[ing] here”.


This website appears to unabashedly declare that it’s legitimately affiliated with the Libra Association, even boasting a checklist of “partners” that–maybe considerably sarcastically–consists of a number of the corporations that made the choice to exit the affiliation final 12 months, together with MasterCard and PayPal. However, the truth that Libra tokens nonetheless don’t exist will be thought-about a robust signal that regardless of the website is promoting isn’t the actual factor.



“[The tokens] don’t exist yet. If someone is selling them, it’s on their own, and it’s their problem.”


While these faux Libra token scams appear to be focused at retail traders, it’s additionally attainable that faux “Libra investment tokens” could possibly be being marketed to institutional traders.

Speaking to Finance Magnates on the Ethereal Summit in Tel Aviv final September, Tomer Barel, Calibra’s chief working officer, additionally acknowledged that there have been faux tokens being bought to would-be Libra traders–maybe even on an institutional stage.

In reality, in September of final 12 months, Finance Magnates reported that a secondary market in Libra funding tokens was already dwell, with institutional traders providing and buying and selling within the options-like merchandise. Barel defined to Finance Magnates that neither Facebook, Libra, nor Calibra had any connection to buying and selling that’s going down in Libra funding tokens.

In reality, “[the tokens] don’t exist yet,” mentioned Barel. “If someone is selling them, it’s on their own, and it’s their problem.”

When requested if the folks dealing these “Libra investment tokens” had been successfully promoting “thin air,” Barel replied that they had been.

Tomer Barel, chief operating officer, Calibra
Tomer Barel, chief working officer, Calibra

“At the moment, yes, [they are selling thin air],” Barel mentioned. “Maybe they are selling a promise that in the future they will have the tokens but, at the moment, there are no investment tokens.”

Barel additionally defined that whether or not or not Libra tokens–which can act as fairness within the cryptocurrency venture–could be tradeable within the first place was up for debate.

“This is something that the members of the Libra Association will have to discuss,” mentioned Barel. “Our hope, as we have already shared, is that we would hope that they do allow the tokens to be traded.”

What are your opinions on how Facebook and the Libra Association are dealing with these faux Libra scams? Let us know within the feedback under. Both of the scams talked about on this article have been reported to the Libra Association. If you come throughout one other faux Libra rip-off, please ship an e-mail to Security@Libra.org. Special due to Dante Disparte.

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