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Polkadot Parachain Detects Fraud Thanks to 2019 SEC Complaint

On January 13th, Composable Finance will celebrate winning the seventh Polkadot Slot Parachain Auction. The Defi Interaction Protocol claims to be the winner with over 9,000 community members who have collected over 6 million DOT.

However, Composable Finance is facing a “storm” from investors when it comes to mining fraud allegations.

Who is the scammer?

Twitter user “Zachxbt” has explain Very shocking news for the community who thinks the Composable Finance product manager could be a scammer.

The statement named Twitter user 0xbrainjar, identified as Omar Zaki, who was fined by the SEC for alleged fraudulent activity. SEC complaint, okay Submit in 2019, Zakis examined mutual fund management practices and found that:

“Zaki constantly misleads investors, tricking them into investing in funds while hiding the fund’s true capital from investors while trying to convince them to proceed with funding the fund.

In addition, Zaki was banned from practicing certain professions or holding any investment-related position for a period of three years. He was also fined $25,000.

ZachxBT say more that previous projects Zaki had worked on were subject to serious insider attacks.

Feedback

Twitter user 0xBrainjar has reply Charges by admitting he’s made mistakes in the past, but with no mention of the SEC fine. 0xBrainjar stated ZachxBT did not give itself a fair chance to respond to the allegations and vowed to hold an AMA meeting to assuage any doubts.

“I do nothing but build the project. I also don’t join twitter, perform “chicken roll” to make the coin price go up a lot. I only speak up if I don’t want to burden the project because of my past mistakes.”

The Zach/Zaki interaction exposes the anonymous risks in the crypto market. In this case, “0xbrainjar” got composable finance investors to trust and mobilize DOT for the project. The real question is, if the stakers knew about the SEC complaint before the auction started, would the stakers have any other choice?

Polkadot parachain slot auctions are already taking place. Interlay took the lead with over 2 million DOTs. The latest winner, meanwhile, is hydradx.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.