The founder of Azuki is threatened with a lawsuit because of fraud for $ 39 million
Date: 2023-07-03 Author: Karina Ziganova Categories: BUSINESS
A decentralized autonomous organization (DAO), consisting of fans of the Azuki project, offered to take 20,000 ETH (about $39 million) from the founder of the non-fungible token (NFT) brand under the nickname Zagabond.
In the proposal, initiated on July 2, they want to hire a lawyer to file a lawsuit against Zagabond (Alex Xu). The authors of the lawsuit are asking for the return of 20,000 ETH received from the launch of the Elementals NFT collection, citing a variety of reasons: from disappointment in the collection to accusations of the team of "obvious fraud".
"Despite our efforts, we were only given a profile picture similar to that from the first Azuki collections, and nothing more. The team is blatantly deceiving us with empathic checks and promises," the DAO members said.
They offer to return the money back to the DAO to "contribute to the growth of the entire Azuki community," for example, to provide rewards and incentives for artists, content creators, and developers. At the time of writing, 88.35% of DAO members supported the initiative, 11.65% were against.
Why DAO Members Are Outraged By NFT Collection
The Azuki Elements collection was unveiled on June 27. At the same time, the studio distributed 20 thousand tokens among the community in advance, which affected the value and value of the collection in the secondary market.
Moreover, the project did not reach the public round of sales - the collection was sold out in 15 minutes at private sales. At the same time, the cost of the original Azuki collection decreased by more than 28%.
However, DAO members believe that Elements is just plagiarism on the old collection. As a result, the developer was accused of manipulating the market. Dissatisfaction with the collection grew even more after the project team transferred 20,000 ETH to a wallet supposedly linked to Zagabond.
Zagabond returns money to investors
Last year, Zagabond promised to compensate investors who invested in three of its crypto projects that turned out to be the subjects of fraud - CryptoPhunks, Tendies and CryptoZunks.
It is assumed that the founder of Azuki received up to $ 3 million from unsuccessful collections within two months. Zagabond, which initially denied the accusations of carrying out a rug pull, then tried to rectify the situation by promising to return the money to investors.
