Alexandre Dreyfus, the CEO and founding father of fan token website Socios, has been accused of withholding funds with the intention to preserve the worth of Chiliz (CHZ), the cryptocurrency utilized by the Socios neighborhood, in accordance with a report from Off the Pitch.
Fan tokens are tied to real-life sports activities groups, creators, or artists, and provides token holders entry to unique fan golf equipment the place they’ll vote on selections inside their neighborhood. In Socios’ case, the platform facilities round sports activities, with customers shopping for Chiliz to buy the fan tokens representing varied groups in soccer, soccer, motorsports, and extra.
As reported by Off the Pitch, Dreyfus allegedly didn’t pay a few of his advisors an agreed-upon share of Chiliz in trade for endorsing the cryptocurrency. An unnamed tech government instructed Off the Pitch that he solely received “some portion of what was promised,” and claims Dreyfus began “avoiding all communications with the advisors” in September 2020.
His motive for not paying out advisors? An inner message from Dreyfus considered by Off the Pitch signifies Dreyfus didn’t need the worth of Chiliz to tank. “We additionally want to guard the buyers,” Dreyfus writes within the screenshotted message. “Once you give free tokens, folks can promote at any worth — it would not matter for them.” He then went on to notice that the “actual buyers” who purchased Chiliz may very well be dropping cash on account of advisors promoting off the foreign money.
The tech government referred Off the Pitch to 3 different advisors who additionally allegedly went unpaid, and received affirmation from considered one of them. Oddly sufficient, that one advisor reached out to Dreyfus as soon as once more — the context of their dialog unknown — and reported again to Off the Pitch that every one 4 advisors had lastly been paid in full. It’s unclear if there are nonetheless different Chiliz advisors that stay unpaid.
“We remorse that some advisers which have labored with us previously weren’t paid in a well timed method and now we have rectified this with them immediately and preserve good relationships in the present day,” a Chiliz spokesperson instructed Off the Pitch. “The agreements have been made when the corporate was pre-start up and at the moment we weren’t in a position to award CHZ immediately because it wasn’t listed on any exchanges. To be clear, this delay is unacceptable and never the best way we need to run our enterprise, and falls in need of the requirements to which we maintain ourselves in the present day.”
Workers members, who have been additionally alleged to obtain a portion of their wage in Chiliz, weren’t so fortunate. When the worth of Chiliz skyrocketed, one worker claims they have been unable to money in on the $10 million allegedly owed by Dreyfus. Chiliz later ushered in a brand new contract to interchange those beforehand signed by workers, leading to a smaller allotment of crypto, Off the Pitch stories. The worker who was owed $10 million supposedly solely made off with round $60,000 on account of the brand new settlement. One other employees member was reportedly fired after talking out in regards to the subject to the press.
Chiliz responded to Off the Pitch’s report in a post on Medium, stating that it “doesn’t replicate the reality of the matter.”
Replace March twelfth 6:05PM ET: Up to date so as to add the response from Chiliz.