The post SYS Labs CEO to Resign Amid Allegations of Mismanagement appeared on BitcoinEthereumNews.com.

Syscoin, a crypto project that predates Ethereum, is expected to undergo leadership changes in the coming days amid allegations of mismanagement and a lack of financial transparency. Key members within the Syscoin Foundation, a non-profit established to further project development, intend to resign and form a new entity, Syscoin Red, according to several sources who spoke with Decrypt. Internal disputes around funding allocations between the foundation and a separate for-profit entity, SYS Labs, have flared, leading those within the foundation to lose faith, sources say. The new entity aims to restore transparency and trust within the Syscoin community, with a clear delineation over who controls the project’s funds, according to foundation board member and treasurer Willy Ko. “The foundation’s treasury wallet is not a multi-signature wallet,” Ko told Decrypt, alleging SYS Labs CEO Jagdeep Sidhu holds sole control. “I have raised concerns about the lack of transparency on using the foundation’s funds.” Though the project may be unfamiliar to most crypto users today, the 10-year-old layer-1 project once commanded a sizeable following, promising to combine features from both the Bitcoin network and Ethereum. At its height in January 2022, the total market capitalization for the project’s native token, SYS, stood at roughly $775.3 million. That figure has fallen to just under $80 million, CoinGecko data shows. Sys Labs executives Sidhu, Chris O’Shea, and Michiel Naring are at the center of these allegations, Matthew Mappin, former business development manager at SYS Labs, told Decrypt. “The Syscoin community has publicly raised significant concerns with Sidhu, Naring, and O’Shea regarding the lack of financial transparency, the obscure relationship between the Syscoin Foundation and SYS Labs, and in particular concerning the management and unclear use of foundation funds,” he said. Following Decrypt’s investigation, Sidhu now intends to step down as CEO of the foundation,…

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Filed under: News - @ July 26, 2024 4:22 pm