On 13 January, Composable Finance celebrated winning Polkadot’s seventh parachain slot auction. The DeFi interoperability protocol was declared a victor with over 9,000 members of the community raising more than six million DOT.
However, the celebrations turned sour around a month later.
Twitter user “zachxbt” [@zachxbt] is known for reporting on projects and protocols they think are suspect. In what came as a huge shock to the parachain community, zachxbt claimed that Composable Finance’s Head of Product was a “fraudster.”
The user in question went by the username “@0xbrainjar” and was identified as being Omar Zaki – whom the SEC recorded as carrying out fraudulent activities. The SEC’s complaint, filed in 2019 when Zaki was reportedly 21, investigated his investment fund management activities and stated,
“…Zaki repeatedly misled investors in the Fund about assets under management, fund performance, and fund management. He also concealed from one investor the true performance of his investment in the Fund, while trying to convince him to finance his next venture, an off-shore hedge fund.”
Furthermore, Zaki was banned from taking up certain investment-related careers or positions for a period of three years. He was also ordered to pay “civil penalties” of $25,000.
Zachxbt further stated that previous projects Zaki had worked on were hit by serious hacks, and questioned if these were internal.
<p lang=«en» dir=«ltr» xml:lang=«en»>8/ It’s clear to me Omar & Blockchain AG have worked extensively together now on three projects.For being a publicly listed German company you can not convince me they did not know his real identity.
Whether or not it was internally “hacked” is up for debate.
— zachxbt (@zachxbt) February 18, 2022
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