I couldn’t find the answer on Discord, so asking here.
From what I’ve read the sitiation is at follows. Correct me if I am wrong.
- Jeffrey Huang and his team launches Cream.
- Swag is extensively promoted by Jeffrey Huang. You can find words of endorsement on Twitter and on Cream Discord. People that doubt the project are banned from Cream Discord.
- Jeffrey Huang and his team adds Swag as collateralized asset on Cream. Collateral is immediately very high. Community disagrees but are outvoted by the whales (devs and people associated with the team). Swag is listed.
- Swag is used to borrow many millions of USDT from Cream. Swag CEO says he will pay it back. Jeffrey Huang and the team still support Swag.
- Cream is sold to Yearn Finance (or merged as a result of some other deal).
- Jeffrey Huang and Cream team announce Swag is going to be delisted from CREAM.
I’ve read this topic and all the discussions on Cream’s and Swag’s Discords:
My questions are:
Does this mean that Jeffrey Huang and his friends from Swag (Sam) are not intending to pay that money back to Cream? Did they just stole couple million USDT from Cream users in an elaborately orchestrated scam by Jeffrey Huang and his team?
As many people asked already: if Swag is a scam, why Jeffrey Huang promoted a scam. If it is not a scam, then why delist it after borrowing such amounts of funds. It looks like they are delisting it so they are no longle liable to pay back those funds. What is even more worrying, recently Jeffrey Huang did the same with another of his tokens, Wifey, which was also listed on Cream and used to steal funds from Cream users. There were many articles warning that Cream team is going to do this again, including this one, and it was never explained: https://coin.fyi/news/ethereum/warning-cream-another-defi-scam-by-people-behind-wifey-scam-i6jetr
Why Jeffrey Huang and Swag try to deny any connections to each other? It is easy to find interviews and articles where Jeffrey Huang is described to be person behind Swag.live (along with Sam Lee). Jeffrey’s previous coin, Mithril, was used on Swag.live. So why denying the connection now? Is Jeffrey Huang and Cream team trying to make Swag a scapegoat for this theft of funds from Cream platform?
Yes, those are serious accusations, but so is the situation.
Jeffrey Huang and Cream team basically vouched for Swag (they were connected with the project after all) and now they are using it as some kind of scapegoat and want to distance from itself.
Solution is simple:
1 - if Swag is legitimate project, Cream team and Jeffrey Huang are expected to support it.
2 - if Swag is an attempt to steal funds from Cream by Jeffrey Huang and his team, then they are expected to pay it all back and explain why they attempted to scam Cream users