Skycoin Dilemma: Insider Trading and Armed Robbery
Another day, another drama in the world of cryptocurrency. Skycoin is the project at hand this go around, as recent revelations in its community are about as colorful as anything we’ve seen yet in the space.
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Audio Recordings Detail Abuses
Synth, whom Skycoin’s website lists as the “architect and project figurehead,” launched a series of new statements in the Skycoin channel on Telegram that have quickly rocked the project’s community.
On one count, he directly alleged insider trading among fellow Skycoin administrators. Several audio recordings were posted by Synth, and one in particular was captured by Twitter user Jared Dunn that details in not so veiled terms how certain Skycoin admins have engaged in insider trading in a private Skycoin Telegram group.
@Skycoinproject @cz_binance @binance CEO Synth audio recording of his knowledge of ongoing insider trading involving his team and his telegram admins(Sudo) and a private insider trading group pic.twitter.com/bdw5QXXRCA
— Jared Dunn (@JaredDu71247146) June 17, 2018
Kidnapping, Robbery, and Price Manipulation
Synth also went into great detail in alleging multiple Skycoin staff were kidnapped and robbed of their crypto holdings at gunpoint. He states his wife was among the victims. Synth outlined some details of the kidnapping, explaining how the damage that could have occurred by the theft was mitigated due to security measures in place by the Skycoin team:
“The kidnapping and death threats were to get stolen coins unlocked.
We did a hard fork to freeze stolen coins and Skycoin staff were kidnapped and threatened to threaten us into unlocking the stolen coins. They also tried to steal Bitcoin out of hot wallets.
They were dumping the stolen coins on the market very aggressively, which is one of the reasons for the price decline.”
Synth goes on to say he had a prior warning of this threat, which prompted him to “cleared out all the money from the computers.” Skycoin has “a team for hostage situation response if this happens again”:
“I was given warnings of the kidnapping threat and that stadf were acting crazy so I had cleared out all the money from the computers so amount stolen could have been much worse…And we have a team for hostage situation response if this happens again.”
He explained, “The best thing we can do is go public about what they did and why they did it.”
Just when we thought the world of cryptocurrency couldn’t get any crazier, right? But regardless of the truth of these claims, the situation is undoubtedly serious for Skycoin investors. Synth encouraged investors to dump their holdings, setting a target goal of $5 USD at which point he recommends rebuying:
“Since they are dumping stolen coins and we cant stop them; we informed all the investors to completely pull out all price support.
If we can buy back the stolen coins at $5 it would be even better.”
Some users in the Skycoin channel expressed doubts over this story. One user asked:
“Also, what does ‘we informed all the investors to completely pull out all price support.’ mean? Are your prices not organic?”
Synth stands by the story, also adding, “I am in a guarded compound with armed guards right now.”
Skycoin Team Speaks Out
Skycoin has released a statement addressing at least some of these events, discussing embezzlement by the Skycoin China marketing team as well as an attack against Synth and his wife:
“The trigger for the events was the discovery that the previous Skycoin China marketing team (EVOLAB) had embezzled approximately 100,000 skycoins over the course of the past half year. In light of this discovery and their failure to return or account for the embezzled coins, the relationship with this team was terminated.
Following this, at 9:30 PM on June 13th 2018, nine individuals, including/led by marketing team members Sam Sing Fong, Mary Li (李臻/李敏), Xiangdong Yan (闫向东) and Jesse Sun Fei (孙飞) burglarized Synth’s home. They proceeded to hold Synth and his wife against their will for 6 hours, over the course of which they threatened, beat and robbed them. Thanks to wallet security measures, the group was only able to extract 18.88 Bitcoin and 6466 skycoins during the robbery. The gang also attempted and failed to steal the design framework for the skycoin ecosystem.”
While these events certainly provide their share of intrigue, the ultimate outcome is yet another bad one for investors.
After Skycoin’s listing on Binance almost a month ago, Skycoin rose to over $35, but it has since been in steady decline, most recently falling under the $8 mark with recent events. The rise and fall in price coinciding with its Binance listing is reminiscent of Bytecoin’s listing early last month.
Additional recordings were made by Synth and posted in Telegram’s Skycoin channel, detailing some of above claims and other details about these recent developments.
We’ve supplied them here in case our readers would like to easily review them for themselves:
What’s your take? Do you think there’s more afoot to this story? Let us know what you think in the comments below.
Images via Telegram, Pixabay