Alexandre Dreyfus, the CEO and founding father of fan token position Socios, has been accused of withholding funds in uncover to retain the price of Chiliz (CHZ), the cryptocurrency long-established by the Socios community, based entirely mostly on a file from Off the Pitch.
Fan tokens are tied to valid-existence sports groups, creators, or artists, and gives token holders salvage admission to to irregular fan clubs where they are able to vote on selections internal their community. In Socios’ case, the platform services and products spherical sports, with customers procuring Chiliz to raise the fan tokens representing a quantity of groups in soccer, soccer, motorsports, and more.
As reported by Off the Pitch, Dreyfus allegedly failed to pay a few of his advisors an agreed-upon a part of Chiliz in alternate for endorsing the cryptocurrency. An unnamed tech government urged Off the Pitch that he simplest obtained “some a part of what changed into as soon as promised,” and claims Dreyfus began “conserving off all communications with the advisors” in September 2020.
His explanation for now now not paying out advisors? An internal message from Dreyfus seen by Off the Pitch indicates Dreyfus didn’t prefer the price of Chiliz to tank. “We also must give protection to the traders,” Dreyfus writes in the screenshotted message. “Should you give free tokens, of us can sell at any set aside — it is now now not relevant for them.” He then went on to demonstrate that the “valid traders” who equipped Chiliz would possibly per chance be losing money on list of advisors promoting off the forex.
The tech government referred Off the Pitch to some other advisors who also allegedly went unpaid, and obtained affirmation from one in every of them. Oddly ample, that one advisor reached out to Dreyfus yet again — the context of their conversation unknown — and reported abet to Off the Pitch that every person four advisors had in the end been paid in pudgy. It’s unclear if there are peaceable other Chiliz advisors that stay unpaid.
“We remorse that some advisers that contain worked with us in the past weren’t paid in a smartly timed formula and we contain now rectified this with them straight and retain staunch relationships on the present time,” a Chiliz spokesperson urged Off the Pitch. “The agreements were made when the firm changed into as soon as pre-commence up up and at that point we weren’t ready to award CHZ straight as it wasn’t listed on any exchanges. To be decided, this extend is unacceptable and now now not the formula we want to speed our commerce, and falls immediate of the necessities to which we retain ourselves on the present time.”
Employees participants, who were also presupposed to receive a piece of their salary in Chiliz, weren’t so lucky. When the price of Chiliz skyrocketed, one employee claims they were unable to make the quite a lot of the $10 million allegedly owed by Dreyfus. Chiliz later ushered in a brand unique contract to interchange those previously signed by staff, resulting in a smaller a part of crypto, Off the Pitch studies. The employee who changed into as soon as owed $10 million supposedly simplest made off with spherical $60,000 on list of the unique agreement. One other staff member changed into as soon as reportedly fired after speaking out in regards to the sphere to the click.
Chiliz responded to Off the Pitch’s file in a post on Medium, bringing up that it “does now now not mirror the actual fact of the matter.”
Replace March 12th 6: 05PM ET: Updated to add the response from Chiliz.
