The esports companies partnered with DM Script, a company that is accused of running an ‘exit-scam’.
Esports organizations OG, Team Secret and M1 Eden have been accused of partnering with a crypto scam that swindled money from many users. Each of the teams promoted DM Script, a self-described "blockchain-gaming company" that engaged in multiple shady practices.
DM Script promised a peer-to-peer (P2P) gambling site that never launched, a crypto gift card service, an unlaunched NFT service, a crypto wallet and multiple side projects. None were delivered. The company launched a trio of coins, including $DMScript (DMST), $Avaluse (AVAL) and $10x.gg (XGG), with almost all of them tanking immediately after they were floated. Every coin now has a value below $0.4.
Reddit user vynx1 compiled the full scope of the alleged scam in a post on r/DotA2. Since January, Dota organizations OG, Team Secret and CS:GO org M1 Eden have promoted DM Script. OG was the first to jump on the train, promoting DM Script in a post on their official website. M1 Eden announced their partnership in April. Team Secret posted its partnership announcement on May 11th.
All A Crypto Scam?
Beyond the promises of products that never launched and the now tanked cryptocurrencies, DM Script has been accused of faking a hack that compromised their Ethereum blockchain.
They followed the news with an announcement of compensation, none of which is forthcoming. Finally, Reddit user vynx1 made it clear they thought the team was pulling an "exit-scam." According to them, the team behind DM Script has hidden their faces from LinkedIn, removed tweets and is adjusting their website to hide their identity. The user apparently reached out to all the teams but didn't receive a reply.
In his post, vynx1 placed considerable blame on OG, Team Secret and M1 Eden for the alleged crypto scam.
"I would have never invested… if it wasn't for the big names of these esport teams."
Crypto scams are, sadly, nothing new in the esports world. FaZe Clan recently found itself in a scandal due to multiple team members taking part in a "pump and dump" crypto scam. FaZe removed one of the accused and suspended three others due to the incident.
Stay tuned to esports.gg for the latest Dota 2 news and updates.