A well-known mining project TGE controversy: token manipulation, financial statement fraud, and large-scale fund withdrawals by management

【ChainNews】Recently, there has been some activity in the crypto community. Several well-known analysts have exposed serious issues with the token TGE of a leading hashing power project—many wallet addresses registered hastily within the past three days, with 12-20% of the tokens being highly concentrated and manipulated, some of which have already flowed into CEXs for dumping. Early presale participants and ecosystem contributors are now feeling quite uncomfortable: either watching their assets shrink or not receiving the rewards promised by the team.

Even more troubling, there are major problems with the project’s financial data. On-chain data shows that the projected full-year loss for 2024 is as high as $3.8 million, with actual revenue only $150,000, yet the publicly announced revenue figure is $6 million—this discrepancy is truly outrageous.

During a time of huge losses for the company, the founder’s own wallet withdrew $2.78 million from the company’s account and other channels in one go in 2024, primarily during fund disbursement to investors. Moving into 2025, the founder has continued to withdraw an additional $1.67 million, mainly from NFT sales and on the eve of token listing—these actions do seem somewhat suspicious.

Beyond financial and token issues, the product itself seems off. Some have discovered that certain mining machine boxes produced by them contain chips recycled from refurbishing old mining machines—reducing product quality. As these issues accumulate, community trust in the project has been severely damaged.