Alon Muroch was lead developer for Getgems / PayKey, working with CEO Daniel Peled.

1200 ICO investors were scammed by those projects merely 1-2 years ago.

So that’s one best practice – don’t participate in an ico with a known scammer.

I just noticed they locked the CoinDash thread. That’s exactly what they did with Getgems.

The goal is to move all the noise and criticism to a private chat where they can keep a lid on it.

I wouldn’t be surprised if the stolen funds find their way to PayKey / Getscammed CEO Daniel Peled.

Alan Muroch likely still works for him.

Are you really surprised that Alon Muroch ran with the money?

Did no one check his previous crypto project — the well known GETGEMS scam?

GG was little more than a white paper used to raise funds that were quickly embezzled to a non-crypto project called PayKey. Alon was lead developer of both.

Same story will unfold: They will spend a tiny fraction of resources developing CoinDash so they can pocket most of the cash. It will fail, they’ll call it a day, and you’ll see them soon enough pitching their next scam.

You keep giving them money; they can’t stop taking it.

Hopefully the media will connect Alon Muroch to both GETGEMS and COINDASH, now that they've both scammed investors.

Alon Muroch has your money. Wake up people! This guy’s last crypto project was GETGEMS, another bold face scam.

It's a straight money grab, as you have correctly pointed out.

Research Getgems, their last ICO.

Only a tiny portion of ICO funds were spent on the Getgems product. Instead, the funds were paid out to themselves as a "reward", and used to launch an entirely different product, cutting out ICO investors.

Alon Muroch was lead developer at Getgems, and only quit in December.

They've tried to bury this scam, but you can still see Alon's profile pic using archive:

https://web.archive.org/web/20150701182432/http://getgems.org/

This is why Alon Muroch is called a scammer:

https://youtu.be/PBvSJzxoq7k?t=8m3s

While debuting PayKey to the world, Alon claimed that it was funded by the Getgems ICO ($800k via Koinify).

But a year later, after much pressure from the community, the opposite was revealed:

https://medium.com/@GetGems/getgems-and-beyond-d178117f520

Getgems was a scam to raise money for PayKey (an app to transfer fiat for banks, no less).

Investors' funds were paid out as rewards for "completing" development, instead of actually funding the GG project.

This allowed them to spend as little as possible on GG, and redirect most of the money into their real project, PayKey.

It also allowed them to claim that each project was separately funded, as the money first went in their pockets as compensation, not directly moving between projects.

Alon, as leader developer of Getgems, an original and multi-year partner of Danial Peled, you need to sort out the mess you're trying to escape from before asking the community for more money.

Start by telling the truth.

The scam is like a giant filter, working its way through a bellcurve of intelligence.

Out of 1250 ICO buyers, the smart and rational got out early; the naive and deluded held until the end.

I suspect most of the diehard loyalists were real investors. (I've also chatted with many of them in the app.)

They defended the scam mostly by attacking its critics. That's all they could do, since the app was clearly terrible.

Most scam victims feel shame, not anger, and that's exactly what scammers count on to make their escape.  

It doesn't surprise me then that perhaps only 1-2 loyalists have reversed their support publicly, and none after the coin delisting.

Adding to this, Daniel tasked David R Allen to spread misinformation in the wake of GG's demise.

That is, David's sole job was to manipulate the folks at the very bottom end of this bellcurve. Not a particularly challenging job...

PayKey CTO Markovich Offer explained the situation in chat last month:

Getgems' $800k was a reward for "completing" the milestones.

The money was not actually intended for GG's development/operating costs; it was simply a payment for work completed.

The ongoing costs of GG were to be met by revenue from the Attention Economy.

Since the reinterpretation of the AE (ad channel) has proven to be a complete failure, the project cannot pay for itself.

Thus, the project is on life-support.

....

We can summarize the scam quite easily now:

1. Present the funds as a reward.

2. After funding, redefine the conditions to make the reward vastly easier to collect.

3. Keep most of the reward as income, rather then spend it on the project.

4. Move company resources to a different project where the reward is ultimately spent.

 

https://www.paykey.com/#/team

Daniel doubled the size of his company.

Looking thru social media, it looks like he went on a hiring spree this summer.

But kept it a secret until election day.

Coincidental timing, I'm sure...

Like so many scams, GG likely started with honest intentions.

But once $1.2mil hit Daniel Peled's pocket, he quickly redefined his commitments to massively downgrade the product he had promised.

This allowed him to transfer the bulk of his money, time and resources to PayKey.

By forming at least 3 companies (DMA, Getgems, PayKey), dragging things out over years, and tasking David R Allen to spread misinformation while he conveniently goes AWOL, Daniel has essentially gotten away with this scam.

One can only hope that PayKey's banking partners are aware that it was funded with stolen money.

Actually, the site has just had an update: they removed Senior Advisor David R Allen from the staff page.

This is the same guy whose primary role in Getgems was to manipulate investors into thinking that everything was going great with the company. And after the coin went bust, continued to spread misinformation for months to stop people from learning the truth.

David R Allen hadn't been seen in Getgems channels for several months... until a user today spotted him trolling under a different account.

He's allegedly now using the name/photo of the dog that can be seen in his personal youtube account.

https://www.youtube.com/user/DramaGoof
 
Some artwork to mark the occasion

http://imgur.com/a/cb0UC

http://m.imgur.com/a/NJnmv

http://m.imgur.com/a/06oV6

PayKey's banking partners should learn where Daniel stole his money from.

They might think twice about doing business with him.

Check out Dario's Twitter header graphic:
https://twitter.com/DarioMRM

On the whiteboard you can see: "$800K + $400K" at some PayKey presentation in Asia.
(That would be 800k from the crowdsale, and 400k from the VC's.)

Yet, they tell us in the recent newsletter:
https://medium.com/@GetGems/getgems-and-beyond-d178117f520#.vz4q8sikk


I think they are beyond caring about evidence of their dishonesty.

Scam victims tend to be an apathetic and shame-filled bunch...

Dario Mutabdzija, co-founder of Koinify and orchestrator of the Getgems crowdsale, is Daniel’s employee at PayKey.

https://www.paykey.com/#/team

https://www.crunchbase.com/person/dario-mutabdzija#/entity

As in, the impartial "third-party" that was to protect investors' interests by holding the funds in locked milestones was onstage this week promoting PayKey. Likely being paid by the very money he failed to safeguard.

Just when you think you've seen the depth of this scam.

After 4 months, they finally updated the iOS app by moving it from the "social networking" category into "utilities".

They are trying to bury their own app.

You inform the community that “smart money” has come to Gemz.

You tell us how you’ve masterfully traded a half-dozen other coins.

You tell us how you’re both a long-term holder of gemz, and yet constantly (and successfully) trade it.

You resort to personal attacks when someone challenges your credibility.

But please, elaborate on your “smart money” rumor.

Now's your chance to prove me wrong.

Here's what you said in November, 2015:


So I was wrong. You likely paid much more than 50 BTC for your 900k gemz, as I generously calculated at the cheapest ICO prices.

You are the single biggest loser in this scam, and incredulously, you are still buying more.
 

IIRC you bought 50 BTC during the ICO, making you the biggest loser in this scam.

Let's stop giving investment advice, shall we?

Good.

It's important that we document and summarize this incredible fraud. The last thing they want is an enduring record of their deceitful actions.

Feel free to mine my personal post history. It is almost entirely focused on the GG disaster.