In an episode highlighting the risks of the cryptocurrency craze that has taken over the world, Virtu Financial Inc wrote off false claims of VirtCoin having to do anything with the global trading firm.
The new age crptos are increasingly being offered via initial coin offerings (ICO) wherein investors invest funds and are issued digital currency in return. Regulators around the world are torn on how to regulate these.
The US Securities and Exchange Commission is actively investigating several companies that claim to be operating in the cryptocurrency space, but in reality just coning neighbourhood Joes. In fact, it blocked a $1billion ICO in January, stating it to be an outright scam.
The interest in cryptocurrencies skyrocketed last year with Bitcoin hitting the $20,000 mark. The dust has settled in a manner of speaking. However, a lot many retail investors have started taking a dip in this space, with many ICOs cropping up around the world.
The VirtCoin website UI is strikingly similar to that of Virtu and also claims the senior executives of Virtu to be part of its “support staff”. Interestingly, there was no contact information on the website.
On Thursday, VirtCoin, in a new release, declared that Virtu was to launch a cryptocurrency, and listed the CEO as contact. This was immediately disregarded by Virtu on Friday.
“VirtCoin has no relationship, connection, or affiliation to Virtu Financial and its officers and directors,” said Virtu’s head of investor relations.
Virtu would be further looking for legal actions for intellectual property infringement.
A cursory look at coinmarketcap.com reveals that no crypto by the name of VirtCoin exists.