‘Fan token’ company Socios accused of cryptocurrency manipulation

Alexandre Dreyfus, CEO and founder of the phantom site Socios, has been accused of withholding payments to maintain the price of Chiliz (CHZ), the cryptocurrency used by the Socios community, according to a report from Off the field.

Fan tokens are linked to real sports teams, creators or artists and give token holders access to exclusive fan clubs where they can vote on decisions in their community. In Socios’ case, the platform is centered around sports, where users buy Chiliz to buy fan tokens representing different teams in football, soccer, motorsport and more.

As reported by Off the field, Dreyfus allegedly failed to pay some of its advisers an agreed share of Chiliz in return for supporting the cryptocurrency. It told an unnamed tech boss Off the field that he only got “part of what was promised”, and claims that Dreyfus started “avoiding all communication with the advisers” in September 2020.

His reason for not paying advisers? An internal message from Dreyfus seen by Off the field indicates that Dreyfus did not want the value of Chiliz to go up. “We also need to protect investors,” Dreyfus wrote in the screenshot. “When you give away free tokens, people can sell at any price – it’s just as much for them.” He then went on to note that the “real investors” who bought Chiliz could lose money as a result of advisers selling the currency.

The technologist referred to Off the field to three other advisers who also allegedly went unpaid and got confirmed from one of them. Oddly enough, one adviser reached out to Dreyfus once again – the context of their conversation unknown – and reported back to Off the field that all four advisers had finally been paid in full. It is unclear if there are still other Chiliz advisers who remain unpaid.

“We regret that some advisers who have worked with us in the past were not paid on time and we have rectified this directly with them and are maintaining good relations today,” a Chiliz spokesman said. Off the field. “The agreements were entered into when the company was pre-started, and at that time we were not able to assign CHZ directly as it was not listed on any exchanges. To be clear, this delay is unacceptable and not the way it was. we want to run our business and it does not live up to the standards we adhere to today. “

Employees who also had to receive part of their salary in Chiliz were not so lucky. As the value of Chiliz skyrocketed, an employee claims they were unable to cash in the $ 10 million allegedly owed by Dreyfus. Chiliz later announced a new contract to replace those previously signed by employees, resulting in a minor allocation of crypto, Off the field reports. The employee, who owed $ 10 million, reportedly got rid of only about $ 60,000 as a result of the new deal. Another employee was allegedly fired after commenting on the issue to the press.

The edge reached out to Chiliz with a request for comment but did not immediately respond.

Updated: March 12, 2022 — 10:37 pm

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