October 1, 2022

Simcord lied about support from the Ukrainian government to advertise its mining pool

On December 11, a round table was held in Kiev on the topic “Blockchain Tool Standards”. Among the departments, allegedly who supported him, the Ministry was indicateddigital transformation, Ministry of Justice and Ministry of Economic Development, Trade and Agriculture. At the same time, the Bitbon digital asset from Simcord, which has the signs of a financial pyramid, was advertised during the event. This was written on Facebook by the vice-president of the Association of Blockchain Ukraine Vitaliy Bulychev.

False support

The organizer of the round table waspublic organization "Research Center for Legal Solutions in the Application of Distributed Register Technologies". The advertising orientation of the event becomes obvious when you consider that its moderator was Alexander Kud, CEO of Simcord, and his colleagues were speakers.

Simcord lied about support from the Ukrainian government to advertise its mining pool

Some speakers:

Simcord lied about support from the Ukrainian government to advertise its mining pool

Representatives do not appear on the list of speakersministries declared at the stand. Perhaps the organizers ranked them as the former first deputy minister of justice of Ukraine Elena Sukmanova and former prime minister Yuriy Yekhanurov. ForkLog requested a comment from ex-officials with a request to confirm their participation in the round table, but has not yet received a response.

The Ministry of Digital Transformation of Ukraine has not previously confirmed the relationship of the department with the round table. An official comment from the minister will follow later.

First Deputy Minister of Justice of Ukraine Olga Onishchuk told ForkLog that she was hearing about this event for the first time.

Mining with a yield of 10,000%

Simcord representatives did not respond to ForkLogto the question whether the ministries supported this round table, and redirected us to the Research Center, indicating that they are the organizers of the event (they later sent an e-mail with explanations - see UPDATE). Although the event’s Facebook page states otherwise:

Simcord lied about support from the Ukrainian government to advertise its mining pool

Answering a ForkLog Content QuestionSimcord’s speeches at the round table, a representative of the PR department of the company said that they covered two topics: “The prospect of attracting significant investment in the Ukrainian economy in the next 10-15 years, subject to timely and effective organization of state regulation of the market for goods and services based on blockchain technology” and "The legal nature of the blockchain token."

Also, the PR manager said that following the results of the event, it was decided to develop a “Doctrine of economic and legal regulation of the market of goods and services on the blockchain”:

Roundtable Final Protocol by ForkLog on Scribd

Judging by the available photos from the event anda previously published statement by the CEO, Simcord is now preparing to launch mining. At the round table, they presented the principle of building mining pools in the Bitbon system.

Simcord lied about support from the Ukrainian government to advertise its mining pool

The structure of the mining pool is divided into four levels, each of them promises its participants a certain profitability - from 10% to 100%.

It is noteworthy that at a cost of one Bitbon of $ 500, fourth-level participants are promised a return of 10,000%.

The Bitbon system divides two types of mining: “Consensus mining” and “Infrastructure mining”. Although in the general sense of the term, neither one nor the other is mining.

"To make money on mining in the Bitbon systemThere is no need to purchase all kinds of additional equipment (processors and video cards with high processing power, farms for mining, etc.). Consensus mining uses the Delegated Proof-of-Stake algorithm, which has been seriously refined and differs from those already on the market. Each Bitbon owner will be able to participate in mining and receive a constant income in the amount that will directly depend on the amount of Bitbon available on his Assetbox electronic wallet. ”

The company gives the following diagram:

Simcord lied about support from the Ukrainian government to advertise its mining pool

“The miner's own power is calculated fromBitbon counts on your Assetbox wallet. Base power - the number of Bitbon on the Assetbox + the number of Bitbon for the people you personally invited from the first line. Social power - the number of Bitbon on the Assetbox + the number of Bitbon for invited people + the number of Bitbon for people in the second line and below. All this is called a miner pool. ”

Simcord lied about support from the Ukrainian government to advertise its mining pool

Thus, early investors "mine" their income from the funds of later investors.

White paper and crowdsale Simcord

According to the white paper project, Simcord is engaged“The development and production of highly loaded software solutions based on blockchain technology, which are based on scientific developments and patents in the field of managing property rights to assets through counter-dating.”

“Bitbon is the first financiala crypto tool secured by assets of the real sector of the economy. The underlying economic model of the contributing system is guaranteed to stimulate cyclical demand and supply for Bitbon, ” - say company representatives.

In the summer of 2018, the company entered the ICO, duringwhich she planned to sell 70 million Bitbon tokens at a price of $ 6. Further changes in the price of an asset were calculated using a certain “special formula depending on the number of Bitbon purchased”.

At the final stage of the public crowdsale, Simcord announced the Golden Price promotion.

“The contract provides for conditions under whichthe company will be able to buy out each Bitbon of the client at a price of $ 100, as a result of which the guaranteed minimum profit of the client will be up to 320% per annum or 1600% after the end of the option contract on October 11, 2023, ” - read the terms of the campaign.

In addition, the company promised Bitbon buyers an option premium of 3% of the number of tokens they purchased. Now the total offer of Bitbon tokens is 100 million.

Expert Opinion

ForkLog asked blockchain expert Pavel Kravchenko, who visited the round table on his own initiative, to comment on the presentation of Simcord.

“If there is a fixed number of tokens, andthey are required for transactions in the system and at the same time they are an investment mechanism, which is confirmed by the screenshots above, then this is a utility token model, and in any case it is subject to a pump and dump.

Simcord claims their token is digitalintellectual property asset. Thus, they are trying to prove that it is absolutely consistent with the law. But no matter how many lawyers try to justify this model, if the token is both an investment and a payment instrument, then a pump and a dump are possible, ” - said Kravchenko.

According to him, the round table gathered “friendlySimcord lawyers and politicians who spoke positively about them. ” The ultimate goal is to enlist the support of various public organizations and enter parliament with a draft law on digital assets.

“It's hard for me to say whether Simcord is a pyramid, but based on the screenshot, there are signs of a pyramid there,” - added the expert.

Certificate from false legislators

“We originally laid in the legal natureBitbon systems adaptive legislative regulation, which is an important indicator of value in the context of the development of the global information economy. All activities of the Bitbon system participants take place exclusively in the legal plane, which ensures the legality of all processes ”, - says the site Bitbon.

Bitbon token has many different documents, supposedlyconfirming its legality - from an inventory passport to scientific and legal opinions signed by the National Academy of Law Sciences of Ukraine (by the way, it includes the previously mentioned round table moderator Nikolay Kucheryavenko). But we will focus on one of them.

On December 7, 2019, Simkord LLC received fromthe familiar to us Research Center for Legal Solutions in the Sphere of Distributed Registry Technologies application, the certificate of compliance of the Bitbon blockchain token to a digital asset.

Simcord lied about support from the Ukrainian government to advertise its mining pool

“This certificate certifies that the tokenthe Bitbon blockchain corresponds to all categories of a digital asset, namely it is an information resource derived from the right to value, circulated in a distributed registry as a unique identifier, ” - reads the conclusion of the center.

A research center was established bythe results of the panel discussion “The Future of Digital Assets: A Financial and Legal Perspective” held during the third Kharkiv International Legal Forum in September 2019. Its founder is (drum roll) CEO Simcord Alexander Kud.

Final Protocol by ForkLog on Scribd

According to the document, the center is implementingblockchain technology in public administration, as well as the development of regulatory documents governing the use of blockchain technology in Ukraine.

However, according to the head of the adviser groupBlockchain4Ukraine parliamentary inter-factional parliamentary association of Konstantin Yarmolenko, this public organization is a “no name” and in no way participates in the preparation of new bills on the topic of distributed registry technology and virtual assets. The president of the Blockchain Association of Ukraine Mikhail Chobanyan did not hear anything about the center.

In addition, Yarmolenko drew attention to the fact that the state emblem of Ukraine is used in the logo and seal of the center, which is the prerogative of only state bodies.

“Article 11 of the Law“ On the State Emblem ”directly prohibits its use by public organizations. In this particular situation, these actions may be part of fraud. ” - Artem Afyan, Managing Partner at Juscutum Law Firm, said in a comment to ForkLog.

The opinion of a lawyer

On the whole, Afyan called the past round table “one of the most cynical imitations of state support that he has seen lately.”

"The people who signed the analysis papersSimcord blockchain networks are law experts. This is a little strange, because personally, as a lawyer, I will never undertake to analyze the network without technical experts. I was also embarrassed by the statement that their token meets the definition of a digital asset, although this term is not legislatively fixed in Ukraine, ” - said the lawyer.

Afyan suggested that not all participantsevents could be in the know about his real purpose. As an example, he named the famous intellectual property specialist Elena Orlyuk. She wrote about her participation in a roundtable on Facebook.

“Obviously, such people were simply used: they were not completely told where they will participate, so they came and seemed to betray the significance of this event with their presence,” - says Afyan.

ForkLog is awaiting comments by Elena Orlyuk about who exactly and for what purpose invited her to this event.

“So far I have no reason to argue that thisa pyramid, but with what force they are trying to give credibility to this project, which no one in the technological and cryptocurrency community knows about, and in general the aplomb of this round table - indicate the risk that this is a pyramidal scheme ”, - summed up Artyom Afyan.

Suspicions of members of the forum

At Simcord-related topic forums, some users talk about negative experiences with the company.

Simcord lied about support from the Ukrainian government to advertise its mining pool

Similar reviews exist on the activities of Cypriot broker UBK Markets, a subsidiary of Simcord. In the UBK documentation, Alexander Kud appears as an executive director.

Simcord lied about support from the Ukrainian government to advertise its mining pool

The facts provided by ForkLog are taken from publicly available sources. The editors are open to comments from representatives of Simcord.

UPDATE:

After the release of the material, representatives of Simcordsent a letter to the ForkLog editorial office informing that the National Academy of Legal Sciences of Ukraine sent to the Ministry of Digital Transformation of Ukraine in the name of M. Fedorov, an official letter of invitation to the round table “Blockchain Tool Standards” with a proposal to personally participate in and delegate it specialized specialists of the ministry. The letter is registered in the office of the Ministry of 04.10.2019, reg. number No. 34300/0 / 1-19.

“The support of the Ministry of Justice was indicatedon the following basis: the round table “Blockchain Instrument Standards”, which was held on December 11 at the Ukrainian House, is the official continuation of the panel discussion “The Future of Digital Assets: a Financial and Legal Perspective”, which was held as part of the III Kharkiv International Legal Forum, which was enshrined in Minutes of panel discussion. The forum was held with the support of a number of organizations, companies and ministries, in particular, the Ministry of Justice, information about which is posted on the official information resource of the forum and, accordingly, was transferred to the information resources of the round table, ” They explained in a letter.

UPDATE 2:

The event’s website began to clean up the list of ministries whose support was announced.

Compare, this is how the site looked before the release of our publication:

Simcord lied about support from the Ukrainian government to advertise its mining pool

And so - after:

Simcord lied about support from the Ukrainian government to advertise its mining pool

You can read more about the operation of MLM schemes in ForkLog investigations about the Cashbury, OneCoin, and Prizm projects.