• A researcher alleges Filecoin ICO fraud involving Ethereum Foundation and CCP entities.

  • The investigation reveals suspicious patterns in Filecoin’s ICO transactions.

  • Potential implications for wallet owners and venture capitalists under scrutiny.

A prominent crypto investigator, TruthLabs, has unveiled allegations suggesting that Filecoin (FIL), a crypto project that gained significant attention in the blockchain community, might have been part of a fraudulent scheme. 

In particular, the research team argued that Filecoin could be a scheme orchestrated by multiple entities, including the Ethereum Foundation, Wanxiang, Prometheum, and other entities linked to the Chinese Communist Party (CCP).

🚨🇨🇳 Was #Filecoin a FRAUD Orchestrated by the Ethereum Foundation, Wanxiang, Prometheum, and other CCP entities? READ TO THE END!! 🇨🇳🚨When you sleuth, you need to remain open to all possibilities. Within a transaction, data can be derived from just about the entirety of it.… pic.twitter.com/MzX82n4InC

— TruthLabs 🫡 (@BoringSleuth) September 27, 2023

In the tweet, TruthLabs urged the crypto community to keep an open mind when investigating crypto transactions. According to TruthLabs, the complexity of crypto transactions often hides crucial information, and exploring every possibility is essential.

In their quest for answers, the researcher scrutinized the Filecoin Initial Coin Offering (ICO) and uncovered unusual patterns within wallet activities. The investigation commenced with the mapping of wallets. Specifically, the team began with the address that had sent the most Ethereum (ETH) tokens to Filecoin and progressively moved deeper into the network. 

What raised eyebrows during this process were the numerous wallets sending ETH with highly unusual decimal numbers. TruthLabs claimed to find 1,255 inbound transitions. They disclosed that a significant number of the transactions concluded with ETH amounts ending in peculiar patterns, such as “xxx.xxx937 ETH” or “xxx.xxx967 ETH,” while a unique set ended in “xxx.xxx696 ETH.”

Furthermore, TruthLabs provided a graphical representation of these patterns, suggesting a deliberate effort to create the illusion of numerous individual participants in the Filecoin token sale.

Source: X user TruthLabs 

Moreover, the team alleged that the tactic might have been used to divert attention away from the fact that a select group, including venture capitalists, could have been preparing to offload their holdings onto unsuspecting investors.

Besides, TruthLabs hinted at the possibility of identifying wallet owners by cross-referencing their activities with its database of networks and wallets. The team provided another graphical representation highlighting the involvement of Wanxiang from the Ethereum Foundation, Cumberland, Prometheum, and the Chinese Communist Party (CCP).

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