SolChicks Allegedly Lost $20M Of Treasury Funds In Secret

New reports have revealed that the web3 game SolChicks kept losses of up to $20 million a secret from their community during the UST (TerraUSD) implosion. Crypto detective ZachXBT took to Twitter to expose the May 2022 fiasco to the public. The leaked conversation is between CEO William Wu, and COO Lewis Grafton. Read on to learn more about the messages, and if SolChicks really lost $20 million.

SolChicks Leaked Messages: What do they contain?

The leaked messages are in the form of two screenshots of a WhatsApp conversation from May of 2022. In the first screenshot, dated May 10th 2022, SolChicks COO Lewis Grafton is enquiring about their anchor exposure. Then, the second screenshot, dated a day later on May 11th 2022, shows Lewis asking ‘did you take anything out of anchor’. CEO William Wu replies ‘No’, with Lewis then saying that if it (Terra) makes it way ‘near back to peg’ they should ‘withdraw asap’.

Finally, there is some tension between the two parties, as the following day, May 12th, Lewis says ‘Its about having the majority of the treasury allocated to a Ponzi scheme which is mid collapse’. Clearly this does not look good for SolChicks.

Did SolChicks lose $20million?

To begin, ZachXBT reached out to Lewis regarding the leaked messages. The COO replied that the team “decided that it was in the project’s best interest not to make a public announcement.” He also added that the problem was “discussed and disclosed with our largest private holders.” Upon digging deeper, Zach unveiled that this went against an internal email sent out about layoffs in the company.

ZachXBT had earlier exposed SolChicks about their shady marketing tactics via a Twitter thread. This thread brought to light the fake strategies that Solchicks used to gain misleading traction on their project. Some of these tactics included buying fake Twitter followers, using Discord bots to spam/DM groups of users, fake reddit campaigns, and more.

Shortly after his exposé, Twitter bot accounts flooded in numbers to “defend” the Solchicks project. Right after the bot attack, Catheon Gaming then released a statement deeming Zach a “bad actor” in the space. Furthermore, last year, the gaming company boasted over 100+ VC investments from various companies.

About The Project

Solchicks is a fantasy NFT PvP and P2E crypto gaming ecosystem on the Solana blockchain. The fantasy game allows members to breed and fight…you guessed it…funny looking “SolChicks”. The SolChicks come in different avatars and players can also customize their chicks in-game with the customization options. The SolChicks are also a collection of 10,000 chicks among 5 rarity types.