$80 M in Filcoin Confiscated by Local Authorities
- Local police authorities detained 31 people from Star Alliance, one of the world’s major Filecoin companies. The FIL and other cryptocurrencies confiscated were worth a total of $80 million in US currency.
- The anticipated cause of this occurrence has been claimed to be MLM.
Star Alliance, the world’s first global airline alliance, was founded in 1997 to allow seamless transfers over a vast worldwide network, as well as prizes and recognition for regular international travellers.
On February 8, 2018, Star Alliance unveiled a digital services platform (DSP) as a first step in improving the digital and mobile services available to travellers in the Star Alliance network of 28 airlines. As part of the Alliance’s objective to enhance the customer journey, the platform was created and implemented with global professional services firm Accenture (NYSE: ACN).
Local authorities detained 31 persons from Star Alliance, one of the world’s major Filecoin companies. The FIL and other cryptocurrencies confiscated were worth a total of $80 million in US currency.
Filecoin token (FIL) is Filecoin’s native digital token. Filecoin is a peer-to-peer, decentralised file storage network. The token is offered as a financial incentive to ensure file storage reliability. Filecoin was constructed on top of the InterPlanetary File Structure (IPFS), a decentralised file-sharing network, and added an economic incentive system and marketplace to IPFS.
MLM, or Multi-Level-Marketing (MLM) business, is believed to be the cause. MLMs are made up of people who sell through a pyramid or referral marketing scheme. The business model, which necessitates the recruitment of new individuals to support the entire network, has always been divisive. Companies that use bitcoin in their operations and generate money through direct sales and downline distribution are frequently found functioning in this manner. According to Star Alliance, the reason was that the suspect purchased using suspected unlawful cash and so cooperated in the investigation. Most members have returned to normal employment and will resume services when the assistance investigation is completed.
Buyers and potential registrants should be cautious of MLMs related to Bitcoin since many (if not all) are dodgy businesses. Scams using Bitcoin need the community to be on top of its game to expose such activities.