An illegal startup called Prodeum may have caused millions of euros worth of damage to Lithuania's reputation, according to blockchain experts, some of whom have been affected by the project and are now taking legal action to defend their reputation.
Cryptocurrency
© Vida Press

"Lithuanian projects are highly regarded by the global blockchain community, which not only helps attract media attention to good projects, but also prompts malicious people to take advantage," blockchain expert Vytautas Kašėta said at a news conference on Monday.

"The Prodeum project used our names as we are rather well-known blockchain specialists. I personally feel that my identity has been used. We personally and Lithuania have received a lot of negative publicity," he said.

IT security expert Marius Pareščius says that Lithuania has suffered reputation damage as a result of the project, in which investors from the country did not take part.

"In terms of reputation, we have suffered damage that I'd put at millions (of euros). We know of three wallets (of suspected criminals). Technically, they earned 43 ethereums via two products. So, they earned 43,000 euros from these money schemes involving Lithuanian names", he said.

Lawyer Arminas Junevicius says that action is being taken to protect the interests of Lithuanian nationals, but the very nature of the blockchain technology complicates the process.

"We'll start in our state and will then move on to international bodies. We'll take every action possible to set a precedent," the lawyer said.

"The problem is that this involves more than one jurisdiction. (Another problem is) the anonymity of the blockchain network. But everything is possible," he added.

Prodeum, which billed itself as a new product labeling system startup, was active in January, but later disappeared with investors' money. At least three Lithuanian nationals -- Vytautas Kašėta, Darius Rugevičius and Rokas Vedlūga -- were publicly listed as team members.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Research: small Lithuanian business fails to assess IT potential and risks

Random employees rather than experienced specialists in the field normally are in charge of hardware...

Lithuanians have an idea how to reduce crypto mining costs

During the largest non-profit ICT and entrepreneurship event in the Baltic States #SWITCH held in...

Remigijus Šimašius on #TOWER: the ugly duckling becomes a beautiful swan

On Thursday, mayor of Vilnius, Remigijus Šimašius visited one of the highest residential buildings...

A new attraction centre will open for the citizens of Vilnius.

A Park Town business park located in a strategic area of Vilnius, in a tail of Konstitucijos avenue,...

Some 27 pct of Lithuanians get a pay rise in recent months - Delfi/Spinter poll

Twenty-seven percent of Lithuanians say they have received a pay rise in recent months, with 23.4...