Energi's Earndrop aims to be a fair distribution of coins to individuals who prove their identities and are active within our community. To encourage mass adoption, Energi sought to distribute a considerable amount of the total supply evenly to the world, as opposed to more traditional methods like ICO's. Throughout the rigorous vetting process for Energi's Earncrop program, our Defence Department found that approximately 20% of all applications were fraudulent.
The perpetrators amassed a vast network of sockpuppet accounts claming other people's social media accounts and, even worse, an intricate network of fake referrals. One nefarious network, in particular, was responsible for as many as 10% of the total submissions, which our Defense was able to meticulously identify using proprietary threat hunting analytics. We were not only able to identify the sockpuppet network but the puppet masters behind it. This sophisticated attack attempted to defraud the community of around $1 million worth of NRG via illegitimate submissions. We consider this theft, it is illegal to falsify identification documents for any purpose. Our legal team will be submitting target packages to the perpetrators’ local law enforcement bodies to aid in criminal prosecution.
We are sharing this information to keep our community informed as to why the auditing process has taken noticeably longer than originally expected. Our team is working around the clock to validate submissions and ensure that NRG coins will be distributed in Q4 2019.
Scammers, beware of attempting similar criminal acts for Round 4, as not only will it be a waste of time, but you will face legal ramifications. This case is an excellent example of why Energi’s self-funding treasury model is superior to other projects in the space. Energi has various departments with experts in their respective fields, including our Defense Department, which serves to protect the community from this sort of fraudulent activity.
For more information on the Defense Department, please click the link below.
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Until next time,