San Francisco, March 13 Fan cryptocurrency token company Socios has been accused of price manipulation and according to reports, its CEO Alexandre Dreyfus withheld payments in order to maintain the price of Chiliz (CHZ) token.
A probe by Off The Pitch publication found that Socios, which partners 55 football clubs and governing bodies, withheld crypto payments from key advisors, apparently to maintain the value of its Chiliz currency.
"A staff member alleged that he lost $10 million due to withheld payments," the report said.
Socios is a key part of football's financial ecosystem, putting more than $200 million into the game.
A whistleblower who raised concerns about missed payments internally was sacked on trumped up charges of "harassment".
Fan tokens are tied to real-life sports teams, creators, or artists, and give token holders access to exclusive fan clubs where they can vote on decisions within their community.
As reported by Off the Pitch, Dreyfus allegedly failed to pay some of his advisors an agreed-upon share of Chiliz in exchange for endorsing the cryptocurrency.
An internal message from Dreyfus read: "When you give free tokens, people can sell at any price it doesn't matter for them."
He added that the "real investors" who bought Chiliz could be losing money as a result of advisors selling off the currency.
"We regret that some advisers that have worked with us in the past were not paid in a timely manner and we have rectified this with them directly and maintain good relationships today," a Chiliz spokesperson told Off the Pitch.
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