News"Fan Token" Company Socios Accused Of Cryptocurrency Price Manipulation

“Fan Token” Company Socios Accused Of Cryptocurrency Price Manipulation

Socios founder allegedly failed to pay staff to maintain the price of Chiliz

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Alexandre Dreyfus, the CEO and founder of fan token site Socios, has been accused of withholding payments in order to maintain the price of Chiliz (CHZ), the cryptocurrency used by the Socios community, according to a report from football finance website Off the Pitch.

Fan tokens are associated with real-life sports teams, creators or artists and give token holders access to exclusive fan clubs where they can vote on decisions within their community. In the case of Socios, the platform focuses on sports, with users purchasing Chiliz to buy Fan tokens representing various teams in football, motorsports and more.

As reported by Off the Pitch, Dreyfus allegedly failed to pay some of his advisors an agreed share of Chiliz in exchange for approving the cryptocurrency.

An unnamed tech executive told Off the Pitch that he only got “a portion of what he was promised” and claims Dreyfus began “avoiding all communication with advisors” in September 2020.

Staff members, who were also supposed to receive a portion of their salary at Chiliz, were not so lucky.

When Chiliz’s value skyrocketed, one employee claims he was unable to cash in on the $10 million Dreyfus allegedly owed.

Chiliz later launched a new contract to replace those previously signed by employees, resulting in a smaller cryptocurrency allocation, Off the Pitch reports.

The employee who was owed $10 million allegedly only made ends meet with about $60,000 as a result of the new agreement. Another staff member was reportedly fired after speaking about the matter to the press.

Read Also: Online poker businessman behind plans by Juventus, PSG to sell cryptocurrency tokens to soccer fans

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