A Web3 risk rating firm disclosed that the Cardano stablecoin project Ardana gambled with Investors’ money, instead using it in development works.
Cardano is a popular Proof-of-Stake (PoS) crypto network, known for its potential ability to process crypto transactions efficiently & quickly.
In the middle of 2021, Aradana emerged as a new project in the Cardano ecosystem with the vision to create a stablecoin pool on the Cardano Blockchain so that people can mint fiat pegged stablecoins on the pool & can further integrate native token DANA to gain price increment with the help of the high-level use cases across its stablecoin pool. With all such vision, the project team successfully raised nearly $10 million in October 2021 from CFund, Three Arrows Capital (3AC), and Ascensive Assets.
In Nov 2022, after the bankruptcy of the second-ranked crypto exchange FTX, the Ardana team announced the closure of their project citing uncertain project timelines & funding issues. A few months before, 3AC also went bankrupt. So the whole situation shows that the Aradana team chose a better plan because of the downfall of their backers.
Some people considered that the whole issue was related to the bankruptcy & downfall of the crypto companies because of the extended bear phase of this sector, so the majority of the people failed to cross the question against the Aradana team’s decision.
Recently Web3 risk rating platform Xerberus uncovered the main dark game that happened on behalf of Ardana CEO & key executives.
According to Xerberus, the Aradana team used that investors’ money to invest in crypto assets to make money but they failed & lost nearly $4 million in funds and this was the main reason why they shut down their shop.
The Web3 risk rating platform also shared the traces of the investor’s money that the Aradana team transferred through decentralized crypto exchanges & centralized crypto trade platforms to gamble the investors money.