Company That Launched Fan Token Of Corinthians And Flamengo Is Accused Of Paying Millions

Company That Launched Fan Token Of Corinthians And Flamengo Is Accused Of Paying Millions

A famous company that released the Fan Token from clubs around the world was accused of owing millions to its stakeholders and quickly responded to the article.

In Brazil, for example, Atlético Mineiro, Corinthians, Flamengo have already launched their tokens with Socios. Soon Palmeiras, Internacional, Vasco and others are waiting to announce their own assets.

This shows that there is great interest in fan tokens at major clubs in the world, including Brazil. This technology proved to be a promising source of income for soccer teams, who have raised money directly from their fans through the Socios-linked Chiliz cryptocurrency.

And it is exactly this cryptocurrency and this company that has been accused of trouble by a report.

What does the report say that accused fan token company Socios of indebted millions?

The website Off The Pitch published the results of a five-month investigation against the company Socios last Friday (11). According to the report, the company’s management did not pass on Chiliz cryptocurrencies to employees and consultants as it had promised, and owed it tens of millions of dollars to some.

The justification for keeping these coins was not to influence Chiliz’s price on the market brokers since if the partners received their coins they would be able to sell them and influence the quote.

One of those who questioned the delay in payments was eventually fired by the company and charged with “harassment”. Some partners and consultants, who were from Facebook, Google and other big companies, joined Socios between 2018 and 2019, a period when a big contract was announced in the market and moved this token, which is to be paid in Chiliz (CHZ).

However, many lost access to the CEO of the company in September 2020 and only a portion of the debt was received by many. In 2021, the currency exploded and many despaired of not selling the promised coins and taking advantage of the market’s right moment, according to reports sent to the investigation.

After the reports against Socios, the company responded to several questions to explain that there were changes in the transfer policy, among other things.

What did the company say in response?

Seeing the report citing him, Socios CEO Alexandre Dreyfus posted on his Twitter that the allegations are unfair and promised to fix the issue.

“Today (11) false accusations were made about me and Chiliz, some of which have already been corrected. But just to be clear, I want to share the facts and respond fully.”

In the response of the company Socios, they said that after speaking with the journalist, they have already changed a lot of data in the report and are making an effort to present the situation transparently to anyone who wants to know.

The note makes it clear that the matter is being dealt with as a matter of priority and that full clarification is needed soon.

“The article also contained several other allegations against Chiliz that we consider to be a matter of priority. We will take all necessary steps to demonstrate the accuracy of our platforms and to correct false reports.”

Regardless of what the company’s executives might have done to keep the price of Chiliz stable, the coin has plunged 76% since March 13, 2021, when it hit its all-time high on the market exactly 1 year ago.

Source: Live Coins