Karatbars under review
Karatbars international GMbH has revealed its plans to follow up with a second round in December 2019 after the first token sales. Meanwhile, the latter will be held to promote KaratBank Coin, which is allegedly linked to a crypto bank in Miami.
The claim regarding the crypto bank caught the attention of the Florida Financial Regulatory Office (OFR). The institution is now starting an investigation about the company.
Katie Norris, the agency's communications director, said Karatbars is not registered as a bank in the OFR. Regarding the details of the investigation, Katie says "that's all they can share now."
The company does not face the review for the first time by regulatory agencies. The company was founded in 2011 by Herald Seiz, who is still the leader.
Prior to the first token sale of Karatbars, Quebec's Financial Market Regulators warned investors that they should be cautious about the company. At the time, the company was offering online gold purchases to “affiliates”. Karatbars offered these buyers a commission to register other partners.
Regulators issued similar warnings in other regions, including the Netherlands and Namibia. The Netherlands called the company's business method as a high-level form of marketing. Meanwhile, Namibia described the whole project as a "pyramid scheme".
