Leaked Message From SolChicksNFT’s CEO and COO Confirms $20 Million Treasury Loss
A number of recently released screenshots containing supposed messages between the CEO and COO of SolChicks, one of the most overhyped games on Solana, were provided by ZachXBT, an anonymous researcher well-recognized for his insights and investigations. According to ZachXBT, the SolChicks team appears to have decided to keep too much of their investors’ money hidden.
During the UST Collapse, SolChicks Concealed $20 million in Losses.
SolChicksNFT treasury funds may have lost up to $20 million due to the $UST implosion in May. However, it seems the community was kept in the dark.
A debate between the CEO, William Wu, and COO, Lewis Grafton, of SolChicksNFT, which recently migrated from Catheon Gaming, was revealed in a recent tweet. ZachXBT, a blockchain investigator, claims that the leaked communications between Wu and Grafton revealed up to $20 million in damages to treasury funds due to the UST collapse in May.
ZachXBT contacted Grafton for a response and continued his investigation into the texts that had been leaked. Grafton’s response, which stated the business had “discussed and communicated it with our largest private holders,” caused worries to increase:
“[We] determined that it was in the project’s best interest not to make a public announcement and cause unwarranted worry given that we still have more than five years of runway and we have zero leverage,”
ZachXBT expressed his own worries and stated that the SolChicksNFT team seemed to believe that only major investors require knowledge, which is alarming. He added that Grafton’s response ran counter to an internal email made public by the business and detailed “massive layoffs.”
ZachXBT finalized by saying that he had written about SolChicks in a post he had started in 2021, which raised issues with “deceptive marketing (undisclosed ads/using bots) and terrible management.”
In response, Catheon Gaming
In the most recent development, Catheon Gaming has published a tweet in response to the stolen messages “strongly” denouncing bad actors who have stolen “private company information to gain exposure” and has set an AMA for Nov. 16 at 1 PM UTC.
ZachXBT’s writings were soon followed by an official statement from Catheon Gaming, the group behind SolChicks and other blockchain-based games. The texts are allegedly out of context, and the whistleblower’s activities “create actual harm,” according to the statement.
Regarding the problems identified, the team acknowledged injecting some of its portfolios into Anchor Protocol (ANC), but the money was distributed in varied ways.
Additionally, Catheon Gaming is under no duty to divulge private financial information because it is not a DAO nor a publicly traded firm. The platform’s business has also been reorganized. The company does not manage the money belonging to its customers, has no obligations, and does not engage in day trading.
Unfortunately, rug pulls and pump-and-dump schemes have become quite a common occurrence in the world of crypto. That is why it is advisable to always Do Your Own Research (DYOR) before investing in the space.