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 "@id": "https://wulfkaal.github.io/entities/fraud",
 "identifier": "kaal:entity:fraud",
 "name": "Fraud",
 "termCode": "fraud",
 "inDefinedTermSet": {
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 },
 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2811718-019",
   "identifier": "kaal:claim:2811718-019",
   "text": "Relying solely on a representation by the investment or the fund, without actually performing due diligence, is sufficient to present a fact issue on fraud to a jury.",
   "abstract": "Relying solely on an investment or fund representation and not actually performing due diligence is sufficient to present an issue of fact to a jury for fraud.",
   "citation": "Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718",
   "datePublished": "2016",
   "claim_type": "condition",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "fraud claims against private fund advisers"
   ],
   "source_pdf_sha256": "b52152af561288173840a1cabbcf8f4b337e73507c856ee01600799073f4156f",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3002908-012",
   "identifier": "kaal:claim:3002908-012",
   "text": "The SEC rejected the Winklevoss Bitcoin ETF application on the ground that the unregulated nature of Bitcoin made the proposed fund susceptible to fraud.",
   "abstract": "In rejecting the application, the SEC reasoned that, because of the unregulated nature of Bitcoin, the proposed fund was susceptible to fraud.",
   "citation": "Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908",
   "datePublished": "2017",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "SEC Release No. 34-80206, March 10, 2017"
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   "source_pdf_sha256": "06a7b61e75f905ee07e422e875d83a65c5033a248a6e05a213523b034e5db534",
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3117224-033",
   "identifier": "kaal:claim:3117224-033",
   "text": "The People's Republic of China has banned ICOs entirely, including the offering of coins and the exchanges used to trade them, on the view that ICOs hurt the market through potential deception and fraud.",
   "abstract": "The People Republic of China have taken a firm stance against ICO's, banning them entirely.",
   "citation": "Wulf A. Kaal, Initial Coin Offerings The Top 25 Jurisdictions and Their Comparative Regulatory Responses (2018). SSRN: https://ssrn.com/abstract=3117224",
   "datePublished": "2018",
   "claim_type": "empirical",
   "confidence": "evidenced",
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   "scope_conditions": [
    "China"
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   "source_pdf_sha256": "83e9ccb9219a217d9fcfc5c098b897229ee7cf85623bee3ae22d2e986548466b",
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3808873-006",
   "identifier": "kaal:claim:3808873-006",
   "text": "The profit driven influx into the digital asset space brought rampant fraud that created a chasm between the decentralized asset space and mainstream investors, and lacking regulatory certainty and recognition of cryptocurrencies exacerbated that divide.",
   "abstract": "With it came fraud in the digital asset space which was rampant and created a chasm between the decentralized assets space and mainstream investors.",
   "citation": "Wulf A. Kaal, Decentralization Neutralizers (2021). SSRN: https://ssrn.com/abstract=3808873",
   "datePublished": "2021",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "digital asset markets between roughly 2010 and 2020"
   ],
   "source_pdf_sha256": "f11493915e6b8c266d421510b5546816e33defb5650aac9d09b20d78549da727",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3949098-021",
   "identifier": "kaal:claim:3949098-021",
   "text": "Traditional underwriting also fails at the agent level, because individual agents within an underwriter may sacrifice the underwriter's overall reputation for personal gain, for example by putting out a fraudulent offering.",
   "abstract": "individual agents within an underwriter may decide to sacrifice the underwriter's overall reputation for personal gain.",
   "citation": "Wulf A. Kaal, Reputation as Capital – How DAOs Upgrade Finance (2021). SSRN: https://ssrn.com/abstract=3949098",
   "datePublished": "2021",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "traditional underwriting firms where agent and firm incentives diverge"
   ],
   "source_pdf_sha256": "04297905564a6092b2db7640561f58fd374d3114c79527357bad09d11b909819",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4067783-003",
   "identifier": "kaal:claim:4067783-003",
   "text": "Rug pulls grew sharply as a share of crypto crime: of the $7.7 billion in total illicit crypto revenue in 2021, 37 percent came from rug pulls, up from 1 percent of illicit revenue in 2020.",
   "abstract": "In 2021 alone, the total illicit revenue from crypto scams was $7.7 billion; 37% of that total resulted from \"rug pulls,\" an increase from the 1% of total illicit revenue in 2020.",
   "citation": "Wulf A. Kaal, DAO Fallacies (2022). SSRN: https://ssrn.com/abstract=4067783",
   "datePublished": "2022",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": true,
   "scope_conditions": [
    "2021 data",
    "measured as a share of total illicit crypto revenue"
   ],
   "source_pdf_sha256": "48f1e307cdbbe28c7843f7744d0ba8cf01662f257a53f2066a7a6c7e03a5acec",
   "status": "current"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4685567-012",
   "identifier": "kaal:claim:4685567-012",
   "text": "Kaal concedes that at their worst Impact 1.0 carbon credits are non transparent, fraudulent and fail to mitigate climate change, but contests the inference drawn from that record: operational shortcomings do not necessarily invalidate the underlying theory.",
   "abstract": "at their worst, carbon credits in Impact 1.0 are non-transparent, fraudulent and fail to mitigate climate change. Nonetheless, operational shortcomings do not necessarily invalidate the underlying theory",
   "citation": "Wulf A. Kaal, Impact Investing Innovation - From Impact 1.0 to 3.0 (2024). SSRN: https://ssrn.com/abstract=4685567",
   "datePublished": "2024",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "distinguishes operational execution from underlying theory"
   ],
   "source_pdf_sha256": "87fb1be89d2661967ed2b0b673fe26448ded3bc3119b122177a4fc13ae5c085c",
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/4900878-020",
   "identifier": "kaal:claim:4900878-020",
   "text": "The 2017 ICO wave democratized access to investment and spurred blockchain innovation, but the absence of regulatory oversight produced numerous fraudulent projects, which exposed the need for robust economic models and regulatory frameworks inside token ecosystems.",
   "abstract": "However, the lack of regulatory oversight also led to numerous fraudulent projects",
   "citation": "Wulf A. Kaal, Quantum Economy and Tokenomics (2024). SSRN: https://ssrn.com/abstract=4900878",
   "datePublished": "2024",
   "claim_type": "failure",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "the 2017 ICO market before regulatory frameworks matured"
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   "source_pdf_sha256": "75bf96d3b751b4ad0a6ca4a32591cf026094f113e3a372aa6c61790941b391f7",
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/5095633-008",
   "identifier": "kaal:claim:5095633-008",
   "text": "Decentralized data production will succeed only if it solves fraudulent submissions, content moderation, and alignment with ethical and legal frameworks; these are necessary conditions, not incidental risks.",
   "abstract": "their success critically depends on addressing challenges such as fraudulent submissions, content moderation, and ensuring alignment with ethical and legal frameworks.",
   "citation": "Wulf A. Kaal, Artificial Intelligence The Final Frontier (2025). SSRN: https://ssrn.com/abstract=5095633",
   "datePublished": "2025",
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   "source_pdf_sha256": "cbb484711f89bcefc9fc6a5730a1ed0a3f764d7999ad9b6f7d8ea05634c26c63",
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   "@id": "https://wulfkaal.github.io/claims/5245185-021",
   "identifier": "kaal:claim:5245185-021",
   "text": "Without feedback loops that continuously ingest data on AI behavior, regulatory efforts cannot efficiently address fraud or consumer harm as AI ubiquity amplifies those risks across decentralized networks.",
   "abstract": "Without feedback loops, regulatory efforts cannot efficiently address fraud or consumer harm as AI ubiquity amplifies these risks across decentralized networks.",
   "citation": "Wulf A. Kaal, How can we Best Monitor AI Agents (2025). SSRN: https://ssrn.com/abstract=5245185",
   "datePublished": "2025",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": true,
   "scope_conditions": [
    "regulation of ubiquitous AI agents on decentralized networks"
   ],
   "source_pdf_sha256": "4d7adba83ec722480e97bde6528cbe9ce98c709e45cb18794f157a64b8fe7da2",
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 ],
 "description": "10 claims in the published works of Wulf A. Kaal carry the concept tag 'fraud'. Derived node: a roster, not an adjudicated definition."
}