Fan Crypto Token Company CEO Accused of Price Manipulation
San Francisco, March 13 (IANS): Cryptocurrency token company Fan Socios has been accused of price manipulation and according to reports, its CEO Alexandre Dreyfus withheld payments in order to maintain the price of the Chiliz (CHZ) token.
An investigation by publication Off The Pitch found that Socios, which partners with 55 football clubs and governing bodies, withheld crypto payments from top advisers, ostensibly to maintain the value of its Chiliz coin.
“A staff member alleged he lost $10 million due to withheld payments,” the report said.
Socios are a key part of the football financial ecosystem, pumping over $200 million into the game.
A whistleblower who had raised concerns about missed payments internally has been sacked on false charges of ‘harassment’.
Fan Tokens are tied to actual sports teams, creators, or artists, and give token holders access to exclusive fan clubs where they can vote on decisions within their community.
As reported by Off the Pitch, Dreyfus allegedly failed to pay some of his advisers an agreed share of Chiliz in exchange for the cryptocurrency’s endorsement.
An internal message from Dreyfus read: “When you give away free chips, people can sell at any price – it doesn’t matter to them.”
He added that “real investors” who bought Chiliz could lose money as advisors sell off the currency.
“We regret that some advisors who have worked with us in the past have not been paid in a timely manner and we have rectified this directly with them and maintain a good relationship today,” a spokesperson for Chiliz told Off the Pitch.