The Ethereum-based Matchpool is facing a large scandal. Its CEO is accused of withdrawing Initial Coin Offering (ICO) funds from the project’s multi-signature account. As sources stated, people witnessed 37 thousand ether leave the projects’ ICO address.
Over the past twelve months, the cryptocurrency community has had a fervent relationship with Initial Coin Offerings and the tethered appcoins involved with these crowdfunds. Millions of dollars have been raised by ICOs, and speculators believe quite a few of the projects have little to offer. Another problem is people’s perception of fund management. One issue arose this week as the project Matchpool‘s CEO Yonatan Ben Shimon was accused of mishandling ICO funds.
Matchpool calls itself a decentralized matchmaking protocol that claims to use Ethereum smart contracts within its application. The project has a two-year roadmap and a token called “Guppy,” which “will play an integral role in its development,” the Matchpool team explains. With the projects marketing techniques and plans the Matchpool organization raised $5.7 million worth of ether in 48 hours during its crowdsale.
Shortly after the successful crowdfunding, one of the co-founders of Matchpool, Philip Saunders, detailed he was leaving the project. Furthermore, Matchpool investors were shocked to hear that $1.6 million in ether was removed from the ICO multi-signature address. Matchpool’s co-founder writes;
Over the last two days, 37500 ETH has been withdrawn from the multi-sig wallet by the CEO Yonatan Ben Shimon without any explanation or announcement due to the need for “hedging.” Yonatan keeps claiming he’s working with Bitcoin Suisse and it’s all ok, but so far I haven’t seen any evidence of this. I suggest you all demand and explanation and keep a close watch. In all likelihood your guppies are worthless.
Matchpool has joined the ranks of the many appcoins who’ve raised millions in ICOs over the past year. Meanwhile, many have wondered how legal these types of crowdfunds are in the eyes of the law, especially after the DAO debacle last summer. With the Matchpool situation, it’s possible the funds were simply moved to escape volatility.
Yet, cryptocurrency spectators believe it is odd a co-founder left while leaving behind very serious accusations of shady activity. Exit scams in the crypto-world are not taken lightly.
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