There have of course been fraudulent companies in this market, just like boiler rooms in the stock market and many other areas of investment. The police deal with these, and useful forums that allow open discussion allow people to list possible dubious companies. A man like Jim Budd behaves like a law unto his own, and escapes the law because of foreign internet hosting rules even when inventing out and out lies.
Some famous cases of companies that have been fraudulent include:
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