1754 Factory: Proposed Legal Review and Report to Centrifuge Community

I echo your sentiments, want to get a better communication strategy for small investors to compare notes more efficiently, best email for u?
@hepp

Insane. Ridiculous. Shameful.

…I know that team doesn’t care and doesn’t read this, but I echo sentiment of all who were betrayed.

the question is whether CFG did its due diligence with regard to Fabian Dureuil. Did Fabian properly disclose any criminal, civil, regulatory or administrative proceedings in the past 10 years that may have stopped this from happening? does CFG has access to “non-public information” about Fabian that it has not shared with the pool but would allow us to recover losses? or we are told to wait another year for answers that may never come.

@str8fish and the rest of us never got answers to these questions back in june '23:

"That begs the question, who was vetting the originator and the loan book on behalf of Davoa?

  • What due diligence does the Centrifuge team do on the issuers?
  • What protective measures does the protocol take to avoid rogue or incompetent issuers? Contracts? KYC/AML? Collateral?

Always assumed the main risks would lie with the originators and the smart contracts / protocol. If those two factors were relatively good, the senior tranche would mitigate most of the remaining risk. So I am curious about what damage an issuer could do in a bad-case scenario and how (if) this is mitigated."

so…any updates re: formation of this creditor committee or is it better that we all make whistleblower reports to the appropriate agencies? why are posts being heavily moderated and flagged? what does CFG have to hide and did Fabian fail to provide full disclosure of any proceedings against him (either in US or abroad) that would be highly pertinent to any “legal review”? why is CFG shielding Fabian?
they hope we will just all forget and walk away capitalizing on the fact that we all just lost our money and don’t have the same legal recourse at our fingertips that they do. bad form.

@osegon Please note the following points for clarification:

  • Centrifuge Network Foundation (CNF) and CFG Services Ltd. have no non-public information regarding 1754 or Fabien Dureuil.

  • The Centrifuge Protocol is operated by the DAO. Due diligence and/or vetting of issuers is carried out by the DAO. All documents received are open-source and public. CNF does not carry out due diligence on behalf of investors. It does not and cannot act on behalf of investors.

  • CNF does not have any legal recourse with respect to 1754 or Fabien Dureuil that is not available to other investors

Seriously? All the vetting 3 years ago was done by DAO? DAO identified and brought this opportunity? I’m sorry, I don’t want to use appropriate language to get banned, but you can’t be serious about it.

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I think we should be much more vocal on other platforms than here. CFG can’t care less about our concerns shared here since visitor numbers of this forum are very small and all these concerns get only very limited exposure. We should coordinate and much more actively bring up these issues on Discord, Twitter, etc. We should talk to well known entities in the space to help create more awareness about what’s going on and how CFG treats their early supporters. I’m already in touch with one of the largest VC funds who I actively work with who also invested into CFG way back and want them to push CFG as well through their powers to not hide behind DAO narrative and rather compensate/treat their early supporters in a fair way.
I hate to FUD my bags which I still hold (as I’m a stupid OG who trusted CFG that it is a honest team that will eventually deliver), but I see no other way how to alert people to not make the same mistake we did.

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Here is some public information about Fabian Dureuil published 11/26/2019 by Capital.fr

excerpt: “Three months after its launch, the Dune cryptocurrency is facing a storm surrounding one of its co-founders. Fabien Dureuil is suspected of reselling millions of units that do not belong to him.The address that controls the eight million tokens currently has a balance of 1.8 million tokens. Much of it has already been distributed. It’s difficult to trace them all, but at least 1.3 million were sent to an address claimed by an over-the-counter broker. This is responsible for buying or selling tokens in the absence of Dune on traditional exchange platforms. This means that Fabien Dureuil sold Dune tokens that did not belong to him for a consideration. The person concerned denies having personally enriched himself. He explains that he needed funds to pay external service providers.”

Fabian/Davoa is a relative unknown who relied on the reputation of CNF/CFG in order to generate any kind of interest in 1754 and associated pools. Regardless of legal technicalities, there is (at the very least) a glaring ethical issue when it comes to implied vouching for an issuer. Shrugging that off and putting the responsibility solely onto investors ignores that obvious fact. In this space, reputation is everything. It’s understandable that CFG wants to preserve theirs but the best way to do that is with fairness and transparency.

agree with @rogerio that the best remedy investors have in the interim is to get the word out so there is more public information regarding both Fabian/Davoa and CFG’s handling of this.

.

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Once again, another censorship attempt to hide the truth from the public.

ewww

yeah it’s pointless discussing negative things here because the moderators will just hide our responses LMAO

Good day Max

We appreciate your engagement on the forum and value your opinions and concerns.

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Best.

so calling a spade a spade is considered as abusive language?

This governance forum may have started out with best intentions but the level of censorship and lack of transparency suggests that rules and guidelines are being broadly/subjectively applied. If we are just being kept on this forum in order to contain the damage and our interests are at odds with the moderator’s, we would be better served by contacting media, posting on social media, and creating an alternative forum. Comments ought to be deemed abusive/offensive by the Community, if that is truly who this forum belongs to.

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Eden Quainton here, general outside counsel to Davoa Capital LP and affiliated entities, with a brief update for the Centrifuge community:

1754 and Davoa have been working with the 1754 creditor group for several months now, and a procedure is in place to liquidate the Bling pool assets for the benefit of the creditors. Some assets have been successfully liquidated in the past few months.

Separately, Charles Russell Speechlys and Manatt Phelps, representing both the 1754 creditors and 1754/Davoa, have filed additional pleadings with the French Tribunal de Commerce to assert the creditors’ and Davoa’s rights in connection with the default by Sherwood, SAS, the owner of Bling, on a series of loans from Davoa.

Davoa and its affiliated companies anticipate that the liquidation of 1754’s assets and the Sherwood litigation will both be completed during the fourth quarter of 2024.

Davoa will provide additional updates if there are any material new developments that may affect the foregoing.

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…after zero updates and radio silence from Fabian (Davoa) in almost a year the plan is to suggest that davoa’s default on the cfg loan was simply caused by bling/sherwood’s default and not its own “mismanagement” when we’ve all seen a history of default and underhanded practices by fabian and his various companies over time? once these assets are liquidated (IF they are liquidated) the plan is to give the “centrifuge community” some kind of consolation prize? or just settle the lawsuit so cfg/fabian can walk away and the rest of us are left with…?
@rogerio has the right idea - get the word out…it will be another year before this so called discovery process begins and if we have learned anything, transparency will be kept to a minimum. now that exposure is on the table fabian/davoa is trying to do reputation damage control but as we have all seen: too little, too late. centrifuge can distance itself by acting with integrity and keeping the community informed.

As a senior tranche investor in Branch Series 3 whose loans come due this July, how do I join the creditor committee and the lawsuit as a plaintiff - given the likelihood that the loans will be repaid is negligible?

Don’t bother. Just write it off like the rest of us because the core team is just gonna claim ignorance under the veil of DAO.

Is there any news? :slightly_smiling_face:

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