Secret Foundation And Secret Labs Engage In Open Conflict

Key Points:

• The Secret Foundation’s and its founder Tor Bair’s previous business practices have been questioned by Guy Zyskind, the founder and CEO of Secret Labs. Both parties endorse the Secret Network, a blockchain in the Cosmos ecosystem that focuses on anonymity.
• Zyskind demanded that the foundation be reorganized as a non-profit, that all of its current money be returned to the community, and that it thereafter be obliged to submit grant applications in order to carry out activities that support the ecosystem.
• Bair agreed that the foundation needs to make adjustments. He argued that this might entail restructuring the organization or setting up a worldwide board.

The Secret Foundation’s and its founder Tor Bair’s previous business practices have been questioned by Guy Zyskind, the founder and CEO of Secret Labs. Both parties endorse the Secret Network, a blockchain in the Cosmos ecosystem that focuses on anonymity.

Zyskind made accusations regarding the foundation’s lack of openness, the alleged improper administration of an OTC transaction that resulted in a loss of around $250,000, and a probable open loan to the defunct trading company Alameda. The issues were brought up in a post on the governance forum for the Secret Network.

He said that Bair cashed out a substantial portion of the secret tokens that the Secret Foundation had sold in 2021 without informing the public.

In response to the allegations, Zyskind demanded that the foundation be reorganized as a non-profit, that all of its current money be returned to the community, and that it thereafter be obliged to submit grant applications in order to carry out activities that support the ecosystem.

Secret Foundation responds to the claims

Bair confirmed that he sold $2.6 million of secret tokens in 2021, in a response posted to the same governance forum. He said that he received token compensation that was subject to vesting periods and sold the tokens once they had been vested.

He mentioned that the foundation frequently released transparency reports that did not include any employee token compensations, not even his own. He added that his coin sales had been reported in its 2021 tax filings, which he said Labs had examined.

Bair agreed that the foundation needs to make adjustments. He argued that this might entail restructuring the organization or setting up a worldwide board. Additionally, he stated that moving forward, pay and transparency criteria should be established.

He made no mention of the purported loan to Alameda.

Bair had already mentioned the botched OTC sale on the governance forum. He said that the foundation tried to conduct an OTC sale of $200,000 worth of secret tokens in December. A counterparty conned the company by pretending to be a reputable venture capitalist to set up the sale and Bair on Telegram to get the money released from the escrow account.

According to Bair, the foundation decided not to reveal this circumstance when it occurred 18 months previous to his appointment.

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