Cypherium - Due diligence

[dshuang]

Cypherium (CPH)

Team

• Sky Guo (Founder) - Oct 2016 - Present | Linkedin profile To verify
• Nate Ren (Co-Founder) - Jan 2017 - Present | Linkedin profile To verify
• 张昊翀 Solomon Zhang (Co-Founder) - Oct 2016 - Present | Linkedin profile To verify
• Sinful (Developer) | No linkedin profile
• Sicong Zhuang (Blockchain Researcher) - Sep 2015 - Present | Linkedin profile
• Fanghua (Joe) Qiao (Title) | Linkedin profile does not mention Cypherium
• Anker Chen (Developer) - Sep 2015 - Present | No linkedin profile
• Eric P. S. (European Affair Director) | No last name
• Mike Eekhof (European Affair Assistant Netherlands) | No linkedin profile
• Hans Eyman (Business Analyst) | No linkedin profile
• Shi Pu | No linkedin profile

Advisors

• Emin Gün Sirer | Linkedin profile
• Jeremy Gardner | Linkedin profile

Company

Kexing Info & Tech Company Limited

Registered Address:
FLAT B, 4/F, Kingswell Commercial Tower
171-173 Lockhart road
Wanchai
Hong Kong

CR No.: 2616387
Company Type: Private company limited by shares
Date of Incorporation: 30 Nov 2017
Active status: Live

Class of shares: Ordinary
Total number of shares: 10,000
Currency: HKD

Founder Members

GUO "SKY", JIAN HUA (DIRECTOR)

Share capital: 9,400

GUO, YANG RUI (??)

Share capital: 599

Full Moral Management Limited

FLAT B, 4/F, Kingswell Commercial Tower
171-173 Lockhart road
Wanchai
Hong Kong
Share capital: 1

ICRIS - Companies Registry

• Founder GUO "SKY", JIAN HUA is the majority shareholder of the company. Co-founder Nate Ren and Solomen Zhang are not shareholders of the company.

Smart contract

• Tokens will be distributed in the Cypherium wallet after the main net Q2 2018

Github

• Not available. Team says code is in a private repo.

Update:

Cypherium Blockchain

Product

• No working product available to test yet. Founder says prototype released in January 2018
• Cypherium Virtual Machine Specification (Draft)

Vesting

• 2 years vesting schedule for team tokens

Vesting schedule not codified. No smart contract used for the pre-sale

Additional info

Token distribution

Public sale cancelled

Flags

Real Team: ✅
GitHub: ✅
Smart Contract: ❌ No smart contract used for the pre-sale
Working Product: ❌
+2 yr Vesting for team: ❌ Vesting schedule not codified. No smart contract used for the pre-sale
Have a company: ✅
Transparent: ❌ Refused to provide information about company shareholder.

IcoCheck

• Added to icocheck.io
• Discuss this project and others on ICO Check Telegram Group chat https://t.me/checkico

[city19akro]

For some more info on Cypherium, i made a twitter thread a couple days ago: https://twitter.com/city19akro/status/975342278146428928
I threaded it like shit so more info here:
https://twitter.com/city19akro/status/975367139615035392
https://twitter.com/city19akro/status/975366638672535555
https://twitter.com/Peeeeertje/status/975360100360769537
https://twitter.com/DanDarkPill/status/975352782839566336
https://twitter.com/crypt0moon/status/975696284173717504

To recap fully (also stuff that isn't on twitter)

• The token metrics were not really clear and (some) private sale investors invested with the impression that unsold tokens (Due to $ hard cap being reached) would be distributed to investors. It was quite important as it would basically double the stake.
• Cypherium team said those tokens might be taken for "partnerships" (although they had more than enough tokens for themselves)
• In the end the community managers and marketing manager quit over the conflict at they thought the investors were being unfairly treated
• Cypherium team announced the unsold tokens would be burnt (and not redistributed - unless ETH would go under $500 in which case they wouldn't burn them but would keep them) which displeased a lot of investors. However they offered to give those who requested it a refund.
• A week or so later it was found that the contribution ETH was moved, first consolidated to here https://etherscan.io/address/0xbc3175b1054214acea52127f3de1b7b243844670 and then sent to here https://etherscan.io/address/0x94f20ccff70d82d1579d8b11f2985f8de9b287cf. When you googled the address it appeared on a russian bitcointalk thread https://bitcointalk.to/index.php?topic=2996289.140
• There was a comment by Cypherium btctalk account in that thread asking information about those addresses saying they're investigating them (https://pbs.twimg.com/media/DYkcb_rWAAA9XY9.jpg:large google translated since it was in Russian - one of their admins is/was russian) - Cypherium's comment has since (since i made the twitter thread) been removed but it was quoted by another commenter: https://bitcointalk.org/index.php?topic=2996289.msg31758765#msg31758765 -
• Around the same time they hired Amazix to manage the community (replace the community managers that left) a couple days later Amazix left refusing to say the exact reason but said they disagreed with the communication strategy of cypherium (this happened around the hack when people starting having questions so probably they also learnt about the hack)
• Meanwhile several investors found this out and asked questions in the telegram group (everything was deleted). They also asked via pm to Nate & Sky Guo (the Execs of Cypherium). Both eventually confirmed that there was a security breach and the funds were somehow compromised (however they deleted all PMs afterwards but screenshots from multiple investors remain & their advisors have also acknowledged the hack - in private at least) Screenshots (not mine - came from a guy on twitter but I have received and seen similar other screenshots):
• Some investors managed to get a refund before the hack happened (I know I did a day before it happened) but a lot did not and Cypherium team kept delaying the requests
• Cypherium team is denying the hack and calling it 'FUD' in public They've also threatened several people (including me) of criminal charges ('obstruction of justice') and lawsuits over the fact we're talking about the hack - altho it's not like the hack is really secret since anyone with a block explorer and google can figure it out... They said in private to some people the FBI was involved and to some their lawyers were involved - that their computers were under forensics investigations etc but are still refusing to disclose it publicly. They've also blamed in private different softwares, they even blamed people that asked for refunds and ex community managers...
• During all that time, potential investors have shown interest for the token and were not told anything about this situation. Some people that were originally put on the waitlist were contacted AFTER THE HACK WAS KNOWN BY CYPHERIUM and asked if they wanted to invest but they never disclosed to them they got hacked.
• Investors that wanted their refunds complained via private email as well and said they'd go to the SEC if they didn't get their refunds. They were also threatened of obstruction of justice and told that Cypherium is outside of the jurisdiction of the SEC (but somehow the FBI is helping them investigate the hack??) screenshot of a cropped email - source didn't want to share all email since had personal info in there
• AFAIK they're still refusing to disclose any of this to potential investors. I (and multiple other past or present investors) have been banned when raising those concerns. The telegram admins actively say all of this is "FUD" and "unproven" when it's in fact quite the contrary.... Found this proof of ban on twitter https://twitter.com/UnicornGonad/status/975821685071974401 I also got banned just a couple days ago and so did other fellow investors over the last couple days.

Anyways I got a few more screenshots of this (some coming from other investors, some are mine). Some are also somewhat confidential and not willing to divulge yet especially in public because of mentioned threats or also because I did not get authorisation from the source yet.

I'm considering contacting the FBI over this to
1- verify whether or not they are indeed investigating (dont know if they - the fbi- would tell me)
2- tell me whether or not somehow we are indeed impeding the investigation (although doubt they're even aware of cypherium at this point).
3- tell them cypherium has been and are misleading investors by not disclosing the hack and the fact they threatened/intimidated me & other people by implying the FBI would go after us for "obstruction of justice" "witness tampering" and whatever nonsense.