Article 4V3C7 German firm told to wind up cryptocoin business after pyramid scheme claims

German firm told to wind up cryptocoin business after pyramid scheme claims

by
Philip Oltermann in Berlin
from Technology | The Guardian on (#4V3C7)

Karatbars used former football stars Lothar Matthius, Roberto Carlos and Patrick Kluivert to promote products

A German cryptocurrency company that used the former football stars Lothar Matthius, Roberto Carlos and Patrick Kluivert to promote its products has been ordered by a German watchdog to wind up its blockchain-based business after allegations it was luring customers into a pyramid scheme.

Karatbars, founded by a Stuttgart-born former vacuum cleaner salesman, Harald Seiz, in 2011, has promised to revolutionise the world's financial system through its internet-based currency.

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