Karatbars International
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anchored·5FcRbN…BpwoSummary
Karatbars International GmbH is a Stuttgart-based multi-level marketing company founded in 2011 by Harald Seiz that sold small gold bars through an affiliate network before launching the KaratGold Coin (KBC) in a 2018 ICO that allegedly raised $100 million. Regulatory authorities in Namibia, Germany (BaFin), South Africa, Canada, New Zealand, and the United States (Florida) issued warnings or enforcement actions against the company between 2014 and 2020, with Namibia's central bank formally declaring it a pyramid scheme in May 2019. By late 2020 the company had rebranded as Freebay after the KBC token collapsed; its founder Harald Seiz relocated to Thailand and a German court issued an arrest warrant against him in 2023.
Connected Entities
1 entities · 10 linked investigations- + 3 more
Timeline(13 events)
2011
Harald Seiz founds Karatbars International GmbH in Stuttgart, Germany, launching an MLM program selling small gold bars through an affiliate network.
CoinDeskMarch 2014
Quebec's Autorité des marchés financiers (AMF) issues a securities fraud warning against Karatbars International, the first major regulatory action against the company.
Behind MLM — Karatbars International Securities Fraud Warning from Canada4 November 2016
A Quebec court issues an order prohibiting the operation and promotion of Karatbars in Canada following AMF enforcement proceedings.
Behind MLM — Karatbars International Banned in CanadaApril 2018
Karatbars launches the KaratGold Coin (KBC) ICO on the Ethereum blockchain, claiming to raise approximately $100 million. The coin is marketed as backed by gold from an alleged mine in Madagascar.
CoinDesk7 May 2019
The Bank of Namibia formally declares Karatbars International a pyramid scheme, citing violation of Section 55A of the Banking Institutions Act.
New Era Live — Bank of Namibia Declares Karatbars a Pyramid Scheme4 July 2019
The 'Gold Independence Day' event in Las Vegas fails to deliver the promised gold-for-KBC exchange; KBC token drops approximately 62% in subsequent days from an all-time high near $0.12.
Behind MLM — KaratBars Holds July 4th Hype Event, KaratGold Coin Dumps 62%4 October 2019
CoinDesk reports that Florida's Office of Financial Regulation has opened an investigation into Karatbars for operating an unlicensed bank in Miami; Madagascar Chamber of Mines denies the existence of Karatbars' claimed gold mine.
CoinDesk21 October 2019
Germany's BaFin issues a cease-and-desist order against the Karatbit Foundation, ordering it to wind up its electronic money business in Germany and return approximately $100 million to investors.
CoinDesk — German Regulator Orders KaratGold Coin Issuer to Cease Operations12 November 2019
South Africa's FSCA issues a public warning stating Karatbars International GmbH is not authorised under the FAIS Act to render financial services in South Africa.
FSCA Press Release13 December 2019
FSCA issues an updated statement finding that Karatbars' two products — physical gold bullion and a to-be-launched digital asset — do not fall under FSCA jurisdiction, though the earlier warning about unlicensed solicitation remains in force.
FSCA Press Release UpdateJuly 2020
Ontario Securities Commission adds Karatbars International GmbH and Karatbit Exchange to its investor-warning list.
Ontario Securities Commission — Investor WarningsSeptember 2020
Karatbars announces a rebrand to 'Freebay,' introducing a V999 token. Critics characterise the rebrand as a continuation of the same structure.
Entrepreneurs NG — Is Karatbars Still in Business?March 2023
The Stuttgart district court issues an arrest warrant against Harald Seiz for failure to appear before a creditor's asset-declaration proceeding; Seiz is reported to be living in Thailand.
Behind MLM — Arrest Warrant Issued for Karatbars International's Harald SeizDecision Log
- hash: 4yn6kuodqKLqsf2mYx1xndvFA7sBJuBqD1hLMdLdJeF5
This investigation is cryptographically anchored to the Solana blockchain (1 event). 14 of 20 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/31/2026, 7:42:50 PM
last updated: 7/26/2026, 8:02:42 AM
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