Suspicions of TROY's fraud broke out
Digital Asset Management project TROY was condemned recently by multiple investors at a live audio broadcast aired on Wechat, a social media platform based in China. After the digital asset management company reported to have lost almost all of its investment, investors started raising suspicions that TROY may not be doing its job properly. # How did it all begin? Chinese cryptocurrency media Block Beat reported on May 26 TROY was suspected of fraud by many investors at an Ask Me Anything session held on Wechat that evening. Troy is a digital asset management platform that provides brokerage service between institutional and retail investors, and claims to be a "Prime Broker" in the cryptocurrency industry. The flagship service of TROY is a digital account that can integrate different financial services, including leverage, derivatives, data analysis, custody and loans all into one. TROY gained the spotlight after it was listed on Binance in an IEO (Initial Exchange Offering) back in December 2019. Allegations arose when TROY was explaining its new Broker SaaS (Broker Software as a Service). During the session, Wang Feng, the founder of one of China’s biggest blockchain media, interrupted the conference in rage, saying TROY was the only investment made by his company that brought negative returns. Wang asked TROY employees how they can manage to provide its customers services if the business is struggling to stay afloat. He warned he would take legal action against TROY to prevent it from committing additional fraud. Wang even added he was willing to request Changpeng Zhao, the founder and CEO of Binance, to delist TROY. #What’s the relationship between TORY and Block VC? Other investors started raising questions regarding the relationship between TROY and a well-known cryptocurrency venture capital Block VC. The venture capital group announced last July that it had invested millions of dollars in TROY with another venture capital, NGC venture, however some raised suspicions that Block VC and TROY are inherently the same company. Wang Feng criticized TROY as “a facelifted version of Block VC.” The founder of BTC Trade.com, Zhang Xouxong, called Block VC a “mob of flimflam artists,” claiming that Block VC has not returned “$20 million worth cash and stock” it took from him in 2018. #What is TROY’s stance? TROY flatly denies all backdoor relationships with Block VC, and made it clear that the two are “entirely separate companies”. While it is true that Block VC invested in TROY, it said the two companies are managed separately. In response to the rage felt among investors, the company admitted it’s “incompetence in handling relationships with investors” and requested them to stop “attacking the entire team” just because “TROY cryptocurrencies have dropped in value” from external factors. “Among many other projects introduced from the last half of 2019 through this year, TROY coins are doing better than what investors think, considering there are so many ill-performing projects in the market,” the company added. The company also denied claims made from Wang and emphasized how TROY has continued to stay in business. “Even after we released our own cryptocurrency, we have continued operations. We are at least doing our job,” the company explained. Industry officials seem to have turned their backs on TROY. One Chinese media speculates that allegations against TROY are “the tip of the iceberg” since a large number of investors faced “similar incidents from other projects” of TROY.