Investigated, the results of which were published on Сashbleed revealed a complex scheme, as Blockstream is a large startup in the cryptocurrency industry, successfully redirects the funds from the purse of the company, and in fact investors in the pockets of its employees and founders. This scheme is not in the interests of investors, making it difficult to get them to their rightful arrive.
Employees of a startup are enriched, pumping out the investors ‘ funds in the name pay themselves “bonuses for performance,” they receive in BTC, with the right to purchase them at a much lower price than exists on cryptonight.
The report says that employees can actually purchase Bitcoins at a price of $350, thus draining millions of dollars from the company into personal wallets.”
Greed, destroying Blockstream
The report noted that this greed could be the end of Blockstream, since startup will not be able to make a profit and benefit their investors, if the current working conditions of the team will remain the same. The Blockstream team has collected the assets of the investors in the amount of $100 million, attracted large investments from AXA, Mosaic Ventures, Khosla Ventures and DG Lab Fund. However, rather than invest in innovation, Blockstream spend it on inflated salaries to employees, despite the fact that the startup hasn’t done anything meaningful in the innovation of the blockchain as it was planned earlier.
This is not the first time that Blockstream is accused of fraud. Previously, the developer David Shares on Bitcoin.com, accused the company of manipulation, and dishonest behavior, noting that, despite attracting an impressive $100 million, she’s still not liable to the investors for use of trusted resources. He urged cryptologist to strengthen the control of the company.
However, Blockstream was part of the team Lightning Network, which allows faster and cheaper Bitcoin payments, solving the problem of low-speed transactions on its blockchain, working with ACINQ and Lightning Labs.
However, the company, years later, has not progressed in development, despite the method of luring employees to a startup with a cash benefit and has not fulfilled its promises to investors.
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Tags: Blockstream Lightning Network