Crypto remains an Industry Riddled with Anonymity, As the Possibility for Fraud stays High

Cryptocurrency enthusiasts have invested hundreds of millions of dollars into a project known as Wonderland, as it claims to provide a system of exchange with decentralized finance.

Investors, who dub themselves as Frog Nation, have entrusted their money to Wonderland’s treasury manager, a crypto developer known as 0xSifu. Earlier this year, 0xSifu was revealed to be Michael Patryn, an ex-convict who served 18 months in federal prison for fraud. Following the discovery, the price of Wonderland’s token, $TIME, crashed overnight as investors debated shutting down the project.

“I was like, ‘Oh, man, this is going to get ugly,'” said Brad Nickel, a Wonderland investor in Florida who runs the crypto podcast Mission: DeFi.

The crypto industry has long been known as a sketchy one as it was built on anonymity. Before its mainstream success, cryptocurrency was a tool used for the illicit activities of thieves and drug dealers.

However, as crypto has become a more mainstream product the anonymity surrounding the industry has remained. With an increasing number of crypto entrepreneurs who hold millions of dollars in investment funds conducting business under mysterious internet avatars and aliases being the norm. It is worth noting that several venture capital firms that deal with crypto have backed founders without learning their true identity.

Although, following the near-collapse of Wonderland, many investors and enthusiasts have debated whether anonymity undermines accountability and enables the act of fraud.

“This pseudonymous stuff is so dangerous,” said Brian Nguyen, a crypto entrepreneur who used a pseudonym last year before making his identity public. “They could be a good actor today, but they could turn bad in two or three years.”

Several entrepreneurs have been asked about their reasons for remaining anonymous, citing that regulatory crackdowns would put them in the sights of law enforcement agencies. Others have stated that they dislike attention as their growing wealth could make them a target for thieves and cyber attacks.

It is mentioned that these entrepreneurs take serious precautions to keep their identities private, often using voice-changing software on calls or requiring third parties to sign NDAs.

Source: The Straits Times