Mybtgwallet Scam: Victims to Sue the Bitcoin Gold Team
The group of Mybtgwallet scam victims has been negotiating refund of $5 million stolen in users funds with the Bitcoin Gold team for the past month. As the talks are stalled, there is no way for victims but to sue the core team members.
Representative of the group and President of the newly created NGO “Crypto-ombudsman” Vadim Levin told ForkLog Magazine about reasons for failed negotiations and further measures the group is going to take.
From the very beginning the Bitcoin Gold core team members have opposed any media contacts of victims. They’ve threaten to give up the cooperation and stop providing victims with information about searching for John Dass, the developer behind Mybtgwallet.
Some hawks of the group sought to inform all cryptocurrency exchanges about the questionable ties between the BTG core team and Mr. Dass’ project. Such efforts have resulted in the failed peaceful settlement.
Failure of the peaceful resolution
The Bitcoin Gold team has agreed to refund an unspecified amount of money after ForkLog Magazine and CoinDesk published first articles about the scam. Developers demanded from victims to found the official organization that will possess a digital wallet to receive BTG coins.
It’s worth mentioning that the core team didn’t mention whether it will be a compensation or donation. However, both sides agreed to cooperate in accordance to this plan.
The group led by Vadim Levin has filed for new NGO “Crypto-ombudsman” with the Ministry of Justice of Ukraine. It’s currently up for approval, but the statute has been already notarized. The group has also elected five members to its supervisory board that will speak on behalf of victims. “Crypto-ombudsman” hereby fulfilled all the demands.
The leadership of the NGO has also cooperated with research lab Neutrino that released an independent report on criminal’s wallets to which users funds had been transferred. This report has allowed the supervisory board to identify all victims willing to join the organization and confirm their losses.
Core team developer Martin Kuvandzhiev has criticized the organization’s website for a “significant marketing component” and questioned the notarized statute. “Crypto-ombudsman” representatives say that after that incident they realized that the Bitcoin Gold team was playing for time.
Moreover, when the supervisory board attempted to press the core team on the compensation issue, developers just said that the entire idea belonged to Joseph, a support staff worker who had proposed to initiate a campaign to raise funds for the victims. They didn’t intend to refund anything. They’ve just proposed to donate a monthly salary. “Crypto-ombudsman” didn’t expect such a development.
It’s worth mentioning that BTG developers were reluctant to share information about John Dass and how he was engaged into creating the digital wallet. They claim that a group of independent experts has checked his biography, but don’t specify any names.
Hawks among the victims have resumed the campaign to inform cryptocurrency exchanges about the issue. The BTG core team was angered at this move and said the victims didn’t deserve any help at all and that they would only deal with developers’ lawyers.
Martin Kuvandzhiev warned them that if exchanges refuse to list BTG, there will be no Bitcoin Gold project and subsequently there will be no coins to compensate. Notably, he used word “compensate” rather than “donate”.
Furthermore, some unknown individuals joined the official victims’ Slack-channel to force the group to cease pressure on BTG project. They also threatened the victims.
Alleged BTG trader named Punisher accused the group of dropping down the price and harming miners and traders by contacting media.
User going under name Marat is a member of the supervisory board and leads the hawks, who seek to make the situation as public as possible through media. An unknown individual created a fake Twitter-page of Marat to discredit the entire initiative of “Crypto-ombudsman”, which is to help the victims return stolen funds, but not to destroy the project.
As you can see below user named Punisher admits that he’s created that page. The supervisory board members are sure that BTG-enthusiasts, who want the price to go up, will increase the pressure on them.
Main BTG developer h4x3rotab has cited threats by victims as an excuse to end negotiations over any form of refund.
The letter with demands sent to the core team was ignored, so the supervisory board of “Crypto-ombudsman” has decided to sue each member of the team for alleged complicity and negligence.
Despite the decision, victims still don’t seek to destroy the project with such a technology, but only to return money. Unfortunately, they have to take legal and public actions to obtain justice.