The Strategist

Chinese Scams Fabricate Cryptocurrency Branded JP Morgan

11/17/2015 - 17:24

Recently, a shady cryptocurrency deal was discovered. The fraud involved JPMorgan bank, under which brand scammers allegedly produced cyber coins JPMCoin, and Morgan Dollars.

Chuck Simmins via flickr
Chuck Simmins via flickr
In a statement posted on the Chinese website of the bank, JPMorgan has denied any involvement in a virtual currency, the Chinese distributed among users of social networks:

"JPM Coin is not affiliated with JPMorgan Chase, and its branches in China or any other country. JPMorgan Chase does not release any cyber coin in any form. Illegal use or references to brands JPMorgan, JPMorgan Chase and Morgan are prohibited in any form."

A number of sites containing information on JPMCoin ceased to function after the bank’s announcement. A Facebook group dedicated to the fake cryptocurrency states that JPMCoin virtual coins are unique and rare commodity, available to only elected members.

By its description and scheme, JPMCoin recalls a similar project - Gemcoin. Last year, Commission on the Securities and Exchange Commission on suspicion of fraud seized assets of California Gemcoin. The company positioned itself as a promoter of alternative digital currencies.
According to the investigation, the company headed by Steve Chen received from investors about $ 32 million. In 2014, the company informed clients that instead of cash, they to be paid in Gemcoin cryptocurrency. It was also promised that Gemcoin surely had to grow in price. The company told investors that the cryptocurrency was allegedly backed by real assets in the form of South American amber deposits. In fact, Chen created nothing more than the pyramid scheme. The company’s investors were to build a network of downstream investors and be rewarded for it in the form of bonuses, converted into virtual currency Gemcoin by the end of the year.

As for JPM Coin, then, as ‘official’ posts in the Facebook group proclaim, JPMorgan is the main investor in the cryptocurrency. Against the background of the growing scandal, the cryptocurrency has already been renamed Beta Coin.

Earlier this month, JPMorgan CEO Jamie Dimon made a statement about another famous cryptocurrency - Bitcoin. Head of the largest US financial institution does not believe in the potential of virtual money in the long run.

Speaking at the annual international conference of Fortune Global Forum, Dimon said that people are wasting time on digital currencies, including Bitcoin.

- That's my personal opinion: there will be no real, uncontrolled world currency. No government will put up with this for a long time. A currency without state control has no future - said the banker.

Nevertheless, Dimon said that the Blockchain’s technology, which is the basis of virtual money, will eventually become a success. He admits that the register allocation to be used for money transfers. But even in this case, it will be US dollars.