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Report: Cardano Stablecoin Project Allegedly Misused Investors' Funds Before Disappearing

Report: Cardano Stablecoin Project Allegedly Misused Investors’ Funds Before Disappearing

Ardana Stablecoin Platform on Cardano May Have Lost Investors’ Money in Bad Crypto Trades

Investigation by Web3 risk-management platform Xerberus suggests that Ardana Labs, which claimed to be creating a stablecoin platform on Cardano, may have transferred 80% of the project’s funds to a personal wallet and made bad crypto investments, resulting in a loss of approximately $4 million. Ardana raised $10 million from investors in 2021 but closed down in November 2022, citing funding and project timeline uncertainty.

Xerberus co-founders identified the Ethereum wallet used by Ardana Labs to collect funds from the initial coin offering (ICO) and traced the movement of funds through various wallets and exchanges. They found evidence that the funds were transferred to a personal wallet of Ardana’s CEO, Ryan Motovu, and then used for risky investments. Xerberus also identified centralized exchanges used by Ardana to transfer funds to the personal wallet.

Approximately $1.82 million of Ardana’s funds were spent on development costs, and $1.4 million remains in a separate wallet. However, nearly $4 million was lost in bad trades made by the personal wallet and a multisignature account.

Ardana’s closure highlights the risks of investing in new Web3 startups without a functioning product. Investors should carefully consider a project’s on-chain behavior before investing.

Summary:

– Ardana Labs claimed to be creating a stablecoin platform on Cardano but closed down in November 2022.

– Xerberus investigation suggests that 80% of Ardana’s funds were transferred to a personal wallet and lost in bad crypto trades.

– Approximately $1.82 million was spent on development costs, and $1.4 million remains in a separate wallet.

– Ardana’s closure highlights the risks of investing in new Web3 startups without a functioning product.

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