The world of esports is enticing. That of cryptocurrencies often puts people in mind of a quick profit. And when the two collide, investors do see a rare opportunity present itself. However, how reliable are such undertakings? Not that much if you base your information on what the Macau News Agency just broke, reporting a possible crypto-fraud using esports as a front.
Novelty Has Its Appeal in Macau
Macau may be under the heel of China, but the region has been quite independent in attracting investors and kickstarting promising initiatives. Even the fear of a China’s sudden tantrum fit that could potentially obliterate any business hasn’t been enough to scare investors away.
However, 43 investors have been quite ready to chase down someone who allegedly put them in a difficult spot. Businessman Federico Rosario from the Macau’s Public Prosecution Office is the region’s esports founder.
As per the latest developments, Rosario was arrested on Monday in relation to investment totalling $2.5 million from 71 investors. Already, the Macau police has had the chance to speak with 46 of them. As per the official information published in the news, 43 people have invested a cumulative sum of $1.8 million and it was those same investors that have decided to also pursue a legal recourse against him.
Rosario, though, continues to claim his innocence after he has been released on bail. He is in charge of Grow uP esports, which is a mediator between cryptocurrency mining equipment provider Genesis Hong Kong, Ltd. Investors were promise dan average of $25,000 if they put their money in the development of cryptocurrency-dedicated mining facilities. The estimated number of the crypto farms was between 40 and 60. Meanwhile, $815,000 have been returned to investors so far.
Playing the Blame Game
Rosario’s innocence is contingent on whether Genesis did go rogue behind his back. If he had no idea that the company wouldn’t pay investors, then he’s innocent but not without fault. He must have suspected that paying out $25,000 from crypto farming is not a realistic prognosis, especially having in mind the maturity of the market.
We will spare ourselves the time and effort to reproach the investors who have been less than vigilant to begin with. Meanwhile, Rosario had his mother file charges against Genesis. Rita Botelho dos Santos works at the Macau Civil Servants Association.
The plot has thickened after Genesis shareholders Dennis Lau and Hong Kit Lau have argued that Rosario had intentionally altered the agreement to say monthly payments rather than the agreed upon yearly instalments.
The allegations have been called calumnious on both sides, but the fact remains that this is a frightening failure to communicate over something as basic and at the same time as important as how much investors will be paid. It’s worth mentioning that to the credit of Rosario, Grow uP esports has organized a women-only competition in the past.
We cannot blame Rosario entirely if his defense comes out to be true. But either way, even if Genesis did something wrong, they must have certainly known that sooner or later, the developments would have eventually caught up to them.
With this in mind, someone is at fault. We just want to know who the culprit is. Gambling News has reached out to Grow uP esports for a comment, but at press time, we have received no answer.