Molfar experts have conducted their own investigation into the relationship between cryptocurrency platforms and collaboration projects with the federal security service of the aggressor country – russia. We were able to establish the facts that link the founders of the projects with the law enforcement agencies of the russian federation, as well as confirm a number of machinations of the company, which directly or indirectly deceived users of these platforms.
The results of the investigation show the following:
- using the products of the aggressor's country is a great danger, regardless of your location;
- Western users risk at least losing personal data, at most – to be internationally prosecuted for the compromised case of a russian terrorist organization;
- Molfar advises Ukrainian users to end any cooperation with the products of the occupying country as soon as possible, because the russian government uses all available information in all possible ways for trade and economic expansion and waging a war of aggression against democratically-minded countries.
Here are the details of the investigation, but first we will tell you how we came up with the idea to focus on these companies.
Inappropriate press release, "accidental" leak of information
While gathering information, Molfar analysts noticed an interesting article in which one of the users of the ISPsystem platform "accidentally" received an official letter from the company with "redundant" information. The letter stated in a dry legal tone that from today ISPsystem began close cooperation with the FSS of the russian federation. The same letter provided information about the 1inch exchange – it allegedly meets all the criteria of "import substitution" and now 1inch will also provide "support for a joint project of ISPsystem and the FSS of the russian federation."
The same letter was received by all users of ISPsystem products, including English-language ones. The letter caused outrage among users. ISPsystem issued an official statement after the "incident" stating that the company's CRM system had been hacked and that users had received an inaccurate letter.
Based on the available information, it is impossible to establish exactly whether the CRM system was damaged by hackers or not. Any direct accusations or allegations against the company will not look serious due to the lack of sufficient evidence.
However, there are facts that cannot be denied – this is evidence of the connections of the founder of 1inch with the FSS of the russian federation. Molfar analysts conducted an investigation, the main terms of which are given below. We offer you to get the information and draw your own conclusions.
1inch and ties with the FSS of the russian federation
DEX developer of 1inch cryptocurrency exchanger price aggregator. Founded in May 2019 by russians Anton Bukov and Sergei Kunts at the New York hackathon ETHGlobal. Has its own 1inch token on the Ethereum blockchain.
In March 2020, the Delaware legal entity 1inch Corporation was registered and in October 1inch Limited was registered with BVI. There is a legal entity in the Cayman Islands through which 1inch tokens (1, 2, 3) were issued.
The platform was launched in August 2020. In 2021, 1inch Network introduced the 1inch Network DAO Treasury, a decentralized organization that manages network settings, allowing 1inch owners to vote for a key protocol and receive a management fee.
Bukov Anton Andreevich – co-founder and architect of 1inch – in 2011 he graduated from the Institute of Cryptography, Communications and Informatics of the FSS Academy of the russian federation with a degree in high-performance computer systems engineering.
Possible connections with government agencies:
- graduated from the Institute of Cryptography of the FSS of the russian federation;
- he has friend Anton Melnikov (VK, Skype: anton_melnikov_), who works at LLC "Research and Production Innovation Implementation Center", located in Skolkovo
- Anton Bukov's have another one friend Anton Googlya (VK), who works at the russian Quantum Center in Skolkovo
- Binance Labs was the investor in the Seed round, and in April 2022, Reuters published an article proving that Binance cooperated with the russian FSS and passed on personal customer data.
Also interesting are a number of the following facts.
- In February 2019, TW 1inch published a call to DeFi Pulse, a site with DEX infographics, not to ignore them, despite the fact that the founder of the DeFi Pulse project Scott Lewis is creating a competitor of 1inch. In response, Scott Lewis said that the founders of 1inch were banned on his platform due to threats of physical violence against him, false denunciation of a member of his team, repeated harassment of numerous team members and repeated violations of requests for lack of contact. Sergei Kunz said that Lewis did not shake his hand at the festival ETHDenver2019, and CTO DeFi Pulse staged a DoS attack on 1inch
- As of September 2021, 1inch blocked trading in the United States in preparation for the launch of a separate platform that complies with the rules of the Securities and Exchange Commission. As of May 2022, the user agreement prohibits the use of the service in the United States.
- User agreement. In terms of using the 1inch Network service, there are a number of items that relieve any responsibility of 1inch. Consideration of disputes only in individual arbitration, the possibility of blocking users at the discretion of the project, the lack of guarantees of accuracy, relevance, completeness of information provided by the service.
- Airdrop. During the first airdrop 1inch 25.12.2020 one user received 9.75m tokens, which at that time was equivalent to $ 22.7m. Another 3 users received 1.21m tokens ($ 2.8m), 1.34m tokens ($ 3.12m) and 1.3m tokens ($ 3m). 37 traders withdrew 0.1-0.7m tokens from their wallet ($ 0.25m - $ 1.75m).
- Blockchain Fund Chelyabinsk. Among the 1inch Network investors, the dealroom resource points to the Blockchain Fund chelyabinsk, a venture fund that invests in digital assets. The investor's one-page website has a phone number marked as flower delivery.
The company's products and financial performance are available at this link. For more information and evidence – please email us and we will provide you with the full text of the investigation.