Topic: [HUGE RED FLAGS] TAGZ, under the microscope by Dr. Rex Yeap - page 4. (Read 1418 times)

Updated review as at 13 Apr 2019: This is now a duo-review, with additional inputs from Braga.

In brief, sufficient time were given to Bryan and his team to respond to the 2nd stage of the Q&A but no further information was forthcoming. There are more than 10 red flags identified in the Tagz company & ICO project, details of these red flags within https://goo.gl/attTHx

Details of this multi-stage reviews (inclusive of Braga inputs in the last section) is as follows:

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First reviewed on 29 March 2019

This is an interesting ICO project and as part of my due diligence efforts, I have a several questions for the team:

Q1: Tagz claims that "TAGZ is a fully licensed Australian AML/CTF Compliant Austrac Regulated Cryptocurrency Exchange.", show me the *full* licensed document

Q2: Send me your *full* company registration document ACN 632 160 920, showing clearly the names of the director(s) and shareholder(s).

Q3: Tagz claims that it is registered with the "Australian Securities and Investment Commission", show me the *full* document confirming this claim.

Q4: Tagz claims that it is "registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC)", show me the *full* document confirming this claim.

Q5: Who within your team have experiences in blockchain design & development?

Q6: Any MVP to show?

Q7a: Among the 6 team members listed in ICOBench [1], what is the Telegram username of each of them?
Q7b: Who are in your Tagz Telegram community [7]?
Q7c: What is the token vesting/lockup period of the 6 team members?

Q8a: Among the 7 advisors listed in ICOBench, what is the Telegram username of each of them?
Q8b: Who are in your Tagz Telegram community [7]?
Q8c: What is the token vesting/lockup period of the 7 advisors?

Q9: What is the specific role of each of the 7 advisors?

Q10: Is the vesting/lockup period coded in your smart contract [2]?

Q11: The Founder & CEO of Tagz Brian Seiler is also the Founder & CEO of Fitrova [3]. There are tons of issue with Fitrova as elaborated in my Fitrova review [4]. Since Brian is the Founder & CEO of both ICO, he needs to address the various concerns in Fitrova if he cares about being credible. Those who wish to understand more details about Fitrova can check out these two Fitrova Telegram support groups [6]

Q12: I was contacted by 'Tagz Group Support' (Telegram id is @Tagzgroup) [5] and I would like to know the name of the person behind this account.

For your reply, pls use this notation, A1 for Q1, A2 for Q2, ..., A12 for Q12, and you may also consider having sub-answers like A7a, A7b, if you wish.

I will revise my ratings after receiving answers to Q1 to Q12 (deadline = 8 April 2019)

References:

[1] Tagz team in ICOBench: https://icobench.com/ico/tagz/team
Cache: https://archive.fo/7Ui3l

[2] Your smart contract is located here https://etherscan.io/address/0x5d8ce06a40fb101895be5b6560931b92a1b3444f#code

[3] Fitrova team in ICOBench: https://icobench.com/ico/fitrova/team
Cache: https://archive.fo/zLrhI

[4] Fitrova Ratings in ICOBench: https://icobench.com/ico/fitrova/ratings
Cache: https://archive.fo/Jr7sj

[5] Screen capture of @Tagzgroup Telegram user: https://goo.gl/aWjJq6

[6] Two Fitrova Telegram Support groups. I have verified both groups and found them to be legit:
a) https://t.me/fitrovachat
b) https://t.me/fitrovascam

[7] Below is an extract of Tagz Telegram History:
".....10.03.2019 23:53:14, Tagz Group Support [@Tagzgroup]: >>upgraded the group to a supergroup<<
.....17.03.2019 21:04:10, Tagz Group Support [@Tagzgroup]: >>changed group name to "Tagz.com (Official Group for TAGZ Exchange)"<<
.....17.03.2019 21:09:36, Tagz Group Support [@Tagzgroup]: >>invited Kelvin Zennia [@Zenniakay]<<
.....17.03.2019 21:09:47, Tagz Group Support [@Tagzgroup]: >>invited Jason M [@JasonMatthison]<<
.....19.03.2019 05:23:26, a: >>joined the group<<
.....19.03.2019 05:23:38, هخ: >>joined the group<<
.....19.03.2019 05:23:42, MIYAGI & ENDSHPIL: >>joined the group<<
.....19.03.2019 05:23:43, Hilmjam: >>joined the group<<
.....19.03.2019 05:23:43, DELETED: >>joined the group<<
.....19.03.2019 05:23:45, Ali: >>joined the group<<
.....19.03.2019 05:23:46, و: >>joined the group<<
.....19.03.2019 05:23:46, Hilolade Nima Qisayam: >>joined the group<<
:
:
__________________________________________________

Updated review on 30 March 2019

C1. Q1-Q11 was very quickly addressed by Bryan Seiler.

C2. However, several of the answers provided are either inadequate or fail.

C3. A final opportunity is now given to the Tagz team to respond to my outstanding questions, namely: Q1, Q2+Q3, Q4, Q9, Q11 and Q12.

C4. In addition, I've expanded my review to cover aspects of the Tagz whitepapers and my list of additional questions are: Q13 to Q19.

C5. In order to make this Q&A more structured and easy to respond/read, Tagz can respond directly to the outstanding questions in the answer tables provided in this Google doc: https://goo.gl/attTHx

C6. I will revise my ratings after receiving answers to the remaining questions (deadline = 8 April 2019)

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Updated review on 7 April 2019

C7. Upon knowing more about Bryan and his shady past, two of his advisors have official stepped down: i) Mr. Hamza Khan first and followed by ii) Mr. Naviin Kapoor and

C8. Over the past 8 days, I have received more information about Bryan and in particular evidence of his dishonest nature. More information in these Telegram groups:
a) https://t.me/fitrovachat
b) https://t.me/fitrovascam
c) https://t.me/icobench_official_chat

C9. Tagz still has one more day before the deadline that I've given them (refer to C6).

C10. I now revise my rating for Tagz from 221 to 111.

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Updated review on 9 April 2019

C11. The deadline given to Bryan and the team to respond has past.

C12. There are more than 10 red flags identified in the Tagz company & ICO project, details of these red flags within https://goo.gl/attTHx

C13. Until we get further clarifications from Bryan and the invisible team, my ratings shall remain the same.

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Additional evidence (as at 13 Apr 2019) from braga @scamwatch_gov:

===========> Braga start

TAGZ is fraudulent cryptocurrency project

TAGZ GROUP PTY LTD
ACN 632 160 920
BRYAN MARK SEILER

TAGZ misrepresents itself as “a fully licensed Australian AML/CTF Compliant Austrac Regulated Cryptocurrency Exchange"

This claim was backed by ‘proof’ presented in https://archive.fo/zR4Sm (original: https://steemit.com/tagz/@tagzexchange/tagz-exchange-ico-scam-or-not-everything-you-need-to-know )

The article intents to mislead reader via deceptive suggestions;

(1) It redefines 'licensed' and 'regulated', lowering the barrier than it should be, in order to retrofit itself as a recipient of ASIC seal of approval.

The only document TAGZ displayed is a Certification of Company registration. ASIC is an umbrella organization that includes overseeing company registration. While there's no denying TAGZ GROUP PTY LTD is a registered company, that makes TAGZ no different from the ten of thousands of other companies in Australia.

A licensed regulated exchange is much more than a company registration;

Under the Corporations Act, licensee of a financial market must supervise the market in accordance with Part 7.2 of the Corporations Act 2001.

Following that, ASIC has to assess how well the operator of a market is complying with their obligations under the Corporations Act, before publishing an assessment report and includes it to a list of approved licences.

You can find this list at https://asic.gov.au/regulatory-resources/markets/market-structure/licensed-and-exempt-markets/licensed-domestic-financial-markets-operating-in-australia/

Moreover, TAGZ claims it is a derivative trading platform. That adds demands in infrastructure and compliance, a procedure that involves underwriting by auditors. Anyone who operates a derivative trade repository in Australia must be licensed or prescribed, regardless of the underlying asset. There is no exemption for cryptocurrency.

(2) The article guides readers to verify its licensing via connectonline.asic.gov.au, an E-service that only convey limited information on company registration. This deceptive method is designed to exploit a false positive, that any ordinary company lookup would produce.

(3) TAGZ oversells its Australian Transaction Reports and Analysis Centre (AUSTRAC) registration as proof of its licensing. AUSTRAC is a public service, any business/company can opt-in voluntarily without cost. It is an essential tool for even small businesses like mom-and-pop money exchangers.

(4) TAGZ oversells a GST registration as proof of its licensing.

TAGZ has failed to furnish any compelling proof more than a Certification of Company Registration and a dishonest interpretation on what constitutes a licensed regulated exchange.

===========> Braga end