Insight into RedGil’s Recent De-Listing on IDEX
On November 4th, it was brought to our attention that RedGil, a token related to the gaming startup RedSoft, was showing some unusual trading behavior on IDEX. In response, IDEX de-listed the token to investigate the issue in detail with the help of the RedGil/RedSoft team.
What We Know
We would first like to address one of the main concerns within the community, namely whether or not the RedGil token listed on IDEX is affiliated with RedSoft. As with all new listings, we began the process by speaking to the team via Skype. We confirmed that all individuals on the project were presenting themselves accurately, matched the profiles of those on the site, and that we were listing the correct token contract.
Since the incident, we requested (and were provided) legal documentation that confirms that the relationship between RedGil and RedSoft is in fact legitimate. We also received copies of communications that demonstrate that members of the RedSoft organization, including the CEO, were aware of said relationship.
Regarding the incident itself, we have learned that RedSoft used a third-party service to manage their token sale, and that this third-party created and controlled both the minting wallet and the web domains. The third-party promised RedSoft that control of both would be transferred to them at the end of the ICO. However, after 1 day of trading on IDEX, the third party sold the remainder of the treasury tokens, shutdown the ICO website, and ceased communication with RedSoft (the distribution and consolidation of treasury tokens are visible via transactions on EtherScan). When RedSoft realized that the third-party was no longer cooperative, they put up a notice on their site labeling the token a scam and warned customers not to purchase it.
Communications with RedSoft
Throughout this process we have been in discussion with the RedSoft team. However, they have not been entirely forthright in their communications, and their story continues to change as we uncover more facts and present them.
We have recommended that they fix this by creating and distributing a new token via a swap, but at this point they have not agreed to this solution. The team seems unwilling to admit that they were in fact victims themselves and that their token sale was sabotaged by the third party vendor.
Given their unwillingness to make a joint statement, we’ve been left with no option but to present the facts as we see them. We anticipate that they will release a statement that contradicts this in an attempt to discredit us by stating that IDEX listed the wrong token. However, we have no doubt that the RedGil token listed on IDEX was authorized by and associated with the RedSoft team.
First, it is important to understand that IDEX is not responsible for this apparent theft. We listed the correct token, and as stated above it was a legitimate project with a legitimate team. This team unfortunately fell victim to an apparent theft by a third party.
That said, we are still attempting to work with the RedGil/RedSoft team to provide them all necessary info of affected accounts in hopes that they will take our suggestion to rectify the situation by creating and distributing a new token, fulfilling their obligation to their customers. We have also provided them with contacts and introductions to other reputable vendors who can assist with this process.
We thank you for your continued patience as we worked to understand all of the details of this situation. At this point, we have no further comments to make on this issue, and we kindly request that users do not contact our support team for additional information. If you do have any questions going forward, please direct them toward the RedSoft team as what happens next is ultimately up to them.
~Team IDEX (Aurora)