1/ Welcome to the FortressDAO.
In this thread, I will do my best to give an overview on what is going on with Fortress right now and how, I believe, its doxed lead developer is actively abusing his powers to take as much money from it as he possibly can
In this thread, I will do my best to give an overview on what is going on with Fortress right now and how, I believe, its doxed lead developer is actively abusing his powers to take as much money from it as he possibly can
2/ Avraham Eisenberg @avi_eisen, a doxed US citizen and the last remaining member of the fortress team, consolidated all the power and all the investors funds in his hands
3/ How did this happen? It became evident, that because of the sheer incompetence of the managing team, Fortress was a failed project, people wanted out. It traded at 25% of its backing value for weeks and the community felt, that redistribution of the treasury is needed
4/ Before the redemption was proposed the team converted half of the treasury's stables (6m$) into FUSD, @avi_eisen personal project's tokens without any vote, approval or even communicating with the community, at the time when discord servers went down for a couple of hours
5/ The proposal for redemption was put shortly after on snapshot.org and was overwhelmingly approved (the second draft of it). The redemption process started and should've ended on 25.02. It involved all the remaining assets in the treasury to be converted into FUSD
6/ Avi stated, that every issued FUSD is backed by fort treasury, but he minted 190+m FUSD by looping FUSD as collateral for minting. Most of it sits in a contract, 10m sits in fort treasury, but his wallet holds 20m.
7/ So what exactly happened and why team abandoned Avi? After the redemption process started, Avi singlehandedly allowed bonding with his project's token, staked FUSD. He manually set the price for bonding at 7.5$, almost 40% under the backing price. Nobody bonded
8/ He kept manually lowering the bond price, and when he set it to 6$, he bonded 50K$ (in sFUSD) from his wallet. The price of Fort started crashing, following whatever he set bond price to, because there is no point in holding the asset when somebody can acquire it for cheaper
9/ this went on until he finally set the bond price to 1.5$, almost 10 times lower, than the backing price. Market price crashed as low as 1.37$ from the highs of 8.4$ in a day. All in the middle of the redemption process. At that time he disappeared from discord completely
10/ In the middle of panic selling he bought 30k$ from LP. Team members came to discord to say that they don't know what's happening and they have no control over the situation, Avi is not communicating. Here are the screenshots from team chat:
11/ The last transaction, sending 20m FUSD and 1m USDC into Avi's wallet, which emptied FUSD multisig, was signed and made both fort and fusd multisigs effectively useless. Avi consolidated 14M$ of real assets and 20m FUSD in his wallet
12/ Avi brought bonding price temporarily to 15$, the price recovered a bit and then he opened the bonding again at 1.5$, but this time he himself bonded A LOT. He bonded >1M$ of FUSD to acquire around 700K Fort, with total supply at the monet around 1M Fort
13/ He already singlehandedly diluted every holder's share almost by 40%. He is in a favorable position with bonding, because you need sFUSD to bond, and it costs 1$ to get 1 FUSD for us, but 0$ for him, as he minted 20M.
14/ He alone controls bonding price. He holds 20M unbacked FUSD in his wallet, and he can mint more. He is the owner and the beneficiary of FUSD project. He is in complete control of snapshot proposals. He has no trust in the community, nobody approves his decisions.
15/ He uses this as leverage to push proposals, unfavorable for the holders. He wants to have voting rights and wants 95K fort (he will have immense voting power) for disabling the bonds and burning what he bonded under the backing.
16/ Bonding under backing price never was voted on and never should be opened, and this AMA with @avi_eisen proves, that he knows it and this is a blatant manipulation
youtube.com
youtube.com
18/ Addition: There is a new snapshot community proposal, it's not from the official fortress account, because only Avi has the author rights in it, but it shows where the community really stands
snapshot.org
snapshot.org
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