Foin Token Scheme Locks Up Investors' Money and Pumps Price

Foin price spikes leading up to and following acquisitionLooking deeper into Foin's price movements and the companies' operations, Cointelegraph discovered a number of red flags.

Since the announcement of suspended withdrawals, the Foin price has surged even further to around $3,200 at press time, representing a near 70% month-on-month price increase.

At press time the token is trading aroune $3,200 on HotBit, while it has sky-rocketed to $4,000 on P2PB2B.Connections to blacklisted firmInitially, the Foin token was managed by the now-defunct site Financial.org, which claimed to be registered in the United Kingdom.

The Foin page on crypto data aggregator CoinMarketCap contains a warning stating: "We have received reports that Foin is affiliated with Financial.org, an organization that is on the watchlists of a number of regulators. Please perform your own due diligence."

Investor concerns follow transfer schemeIn June 2018, Financial.org unilaterally converted investors' dollar accounts into its own Foin tokens and blocked them from withdrawing funds, after which it moved Foin wallets to a migration portal called FoinWalletMigration.com.

The deadline to withdraw Foin tokens was set for Dec. 2, 2019.The company stated, "FoPay will NOT be responsible for any failed Foin transfers from FWM as we are not able to follow up and trace any payments and transfers. Please refrain from asking FoPay questions with regard to FWM because we are not able to answer on behalf of FWM.".

The company's requirement caused an immediate backlash from Foin holders, leading many users to think that Foin is probably coming to the end of its existence.

"Everyone was angry because the company forced people to pay more to withdraw FOIN dc, while there was no guarantee that FOIN would have a good price when it came out on December 3.".

"Dear friends, don't invest in Foin Company I swear it has been more than two years since I bought 4500 Foin but it is not marketable and my life is in trouble".

Others apparently believed that the Foin price would even slump to zero after Dec. 2.Registrations with regulatorsAccording to Bisnode, a Swiss commercial register and credit rating information source, the Foin Foundation was founded in the country in 2019 and registered as a non-profit organization in the canton of Zug.