CYBR Finds “Evidence of Deliberate Fraud” by CoiNeal Exchange

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CYBR has stepped up their attack on the CoiNeal exchange following an acrimonious IEO, stating that it has uncovered “evidence of deliberate fraud by the exchange” in the aftermath of the token sale that ran from June 23 to July 2. In a strongly worded Medium piece, the author stops short of directly accusing CoiNeal of stealing money raised by the sale, but highlights the fluctuating nature of the sales figures supplied by the exchange both during and after the sale, leaving CYBR confused as to how much had actually been raised, and where any excess money has gone.

Technical Glitch or Missing Millions?

According to CYBR, CoinNeal told them at the time of the IEO that some $2.3 million worth of CYBR tokens had been sold, but CYBR were kept in the dark on final numbers until two days after the sale concluded, July 4, where the total reported proceeds were dramatically reduced to just $3,456. On questioning, this was blamed on a “technical glitch” according to CYBR, and the number was then corrected back to the original figure. At this point CoiNeal cancelled the listing of the token on the exchange, citing CYBR’s “insufficient preparation”. Naturally confused and angry, CYBR’s legal team contacted CoiNeal with their concerns, at which point all IEO information was removed from the site.

CYBR Fights the Good Fight

Seemingly lacking the smoking gun to prove any case conclusively, CYBR does not directly accuse CoiNeal of theft of the funds, but the implication is clearly that CoiNeal has either artificially increased its sales figures to make the sale seem more popular than it was, or worse artificially decreased them and kept a portion of the money for themselves. Either way, it makes a mockery of the IEO model, which was supposed to, in the words of CYBR, “weed out bad actors and non-viable projects”. CYBR is actively seeking information from other projects that have dealt with CoiNeal in a sign that it isn’t prepared to let this go easily.