Report: More than 10% of Investors Money is stolen in ICOs

Ernst & Young, one of the largest accounting and auditing companies, published a report in January 2018 which purports that up to 10% of the funds raised in ICOs are stolen. Ernst & Young analyzed more than 372 ICOs, and found that roughly $400 million of the total $3.7 billion funds raised to date had been stolen.

Phishing was the most widely used hacking technique for ICOs, with hackers stealing up to $1.5 million in ICO proceeds per month, according to the report.

The report also stated the poor quality of the ICO papers and the structure of the project: “We were shocked by the quality of some of the white papers, we see clear coding errors and we see conflicts of interest between the companies issuing tokens and the community of token holders.” [read more}