The revelation of Cryptocurrency fraud by a team member of a crypto startup has led to the sudden fall in value, as users hit up talks of a legal fight to recover their stolen money. The malaise of cryptocurrency fraud continues to plague the industry as deceitful entrepreneurs are striving for a legitimate project. The revelation of the team member was made through a Reddit post reveals the CEO and some executive members as a culprit of fraud in MobileGo project.
The Revelation Of Fraud In MobileGo
The brain behind GNation, and also the development of the sister currencies GameCredits (GAME) and MobileGo (MGO). Inclusive of other applications the firm agreed to create a mobile application store offers e-sports wagering, huge developer incentives, and a flagship mobile MMO that would surely see huge popularity. These apps were slated to be released last year but have been delayed till now.
Immediately after MobileGo ICO, there had been open betas for the app store, the MMO (titled Pixel Wars), and the support from major developers such as ZeptoLab (creator of Cut the Rope) were available soon after the ICO, the transition from open and closed betas to a full release has seen a delay since last year till the moment.
The delays had led to increasing concerns the community members, but the worry has been made clear and worsened by Jack Kuveke, former Community Moderator, and Product Manager, through his publication and view of the dealings of things in GNation since the ICO as a precursor to “Transparency AMA” held on July 30.
Kuveke, a supporter of GameCredits and a team member with the Foundation since October of 2016, has been a source of hope to the community since the period of delay and silence on the business of MobileGo, through communication to the community.
Through kuveke Reddit post, he reveals the illicit actions of CEO Sergey Sholom and his brother, Financial Director Maxim Sholom, in driving the goals of the company to its present condition.
He states apart from touring the world and spending very minute time in the office; the brothers had been diverting ICO funds (estimated to be worth US$200 million in and also with Bitcoin forks and crypto price accumulation) to other projects not related to GameCredits. So also the brothers appoint colleagues to the position of power to oversee projects, by not hiring cryptocurrency experts into the necessary role to be filled, despite the call from members and the community.
Apart from the diversion of fund and non-recruitment of experts, information related to partnership and development are kept secret from employees and the community. The CEO has been focused on promoting charity while neglecting the focus on GAME and MGO in GNation’s products. Kuveke stated that he is owed his dues since the release of the ICO and also the promise of an ownership stake to him has not been fulfilled.
Immediately after the release of the fraud information MobileGo’s price plummeted almost 50% overnight, from US$0.21 to $0.11, as trust in GNation has been seriously affected. MGO’s dollar value is presently down by 85% since the ICO, and it’s down 96% against Bitcoin.
The information was released ad agreed by a faction GNation that ready to break away to start a new beginning. This split was caused by their complaints taken lightly by the Shallom brothers in may. The new GC Foundation to be formed by the faction will be developing the GameCredits blockchain in an open source manner. Even though GC foundation had no fund to start, it will be financed by crowdfunding.
As the value of GNation plummets, there had been talking amid Community members regarding lawsuits against the brothers to recover the ICO funds. Meanwhile, the trend of crypto fraud continues to taint the image of the benefits that lie cryptocurrency.