Traverse Legal Launches Investigation into Project 79, Hydro Whales NFT Collection, Burlcore Mining, Ocean Money, GSP, and Sahara Star Mining, and Related Projects.

This blog post is part of an ongoing investigation. All individuals mentioned are presumed innocent until proven otherwise. The statements herein reflect allegations and concerns raised by investors looking for more information about projects they have invested in and for which they have been unable to get information from the project or project founders. The investigation items listed below are not facts and are not definitive conclusions. 

We continue to seek information from anyone involved with Project 79, Hydro Whales, Burlcore Mining, Ocean Money, GSP, and Sahara Star Mining. If you have any details regarding handling funds, contractual agreements, or internal communications, don’t hesitate to contact us. Your information is crucial to ensuring transparency and accountability. 

We Are Looking for Information Surrounding These Projects and People. 

At Traverse Legal, we represent many investors in Project 79, Hydro Whales, Burlcore Mining, Ocean Money, GSP, and Sahara Star Mining. These investors have spent many months trying to obtain critical information from these projects to understand the circumstances surrounding the alleged misappropriation of funds, clarify the relationships between the various founders and associated projects, confirm that the representations made by these projects were true and accurate, and follow up on numerous promises to provide refunds or compensation that never materialized. 

Because the founders of these projects, who are supposed to act as fiduciaries for investors such as our clients, have refused to provide information and, in some cases, terminate key access to the projects to investors who are asking questions, we are trying to determine if these events may constitute a rug pull, a type of fraud where project founders maintain the appearance of activity and transparency to attract more investment, only to delay or disappear when it comes to fulfilling promises.  

Summary of Project Associations 

Project 79 – Sam Pitman, Adam Javaid, Anderson Arokium, Adam Dignan, Alexandros Alexandrou, Dylan Hatton 

Hydro Whales – Sam Pitman, Adam Dignan, Adam Javaid, Anderson Arokium 

Burlcore Mining – Phil David Burley, Jack Joseph Burley 

Ocean Money – Adam Dignan, Anderson Arokium, Sam Pitman, Adam Javaid, Sak Sitthitan, Roshi Sharma 

Sahara Star Mining – Gavin MacDonald 

GSP– Adam Dignan, South American Gold Firms 

Typical indications of a slow rug pull include: 

1. Repeated and unfulfilled promises of refunds, payouts, or transparency.
2. Superficial engagement with investors while avoiding substantive communication or action.
3. Blame-shifting among project founders or scapegoating specific individuals to deflect accountability.
4. Lack of transparency in financial operations and fund management.
5. Sudden disappearances or unavailability of key project leaders.

Unfortunately, many of these indicators may have occurred in these projects, deepening our clients’ concerns. 

After exhausting their efforts to get answers directly from the projects themselves, these investors engaged us to contact these projects directly to obtain the promised information. Despite our attempts to understand the allegations against confident founders affiliated with Project 79, some projects refuse to provide detailed information, while others refuse to respond. This ongoing lack of transparency and accountability has only heightened concerns about potential mismanagement or fraud within these ventures. 

Investigating Possible Misappropriation and Governance Failures 

Allegations of Misappropriation of Funds by Project 79 Founders 

There are serious allegations of misappropriation of funds by one or more founders of Project 79. According to some reports, founder communications and investor statements: 

1. Unauthorized Trading on Dubious Exchanges:  Allegations have been made which suggest that one or more people associated with the Project 79 platform engaged in unauthorized trading of investor funds on dubious exchanges. This trading may have adversely affected other projects related to or using the Project 79 platform.

2. Commingling of Funds:  There are concerns that funds from Project 79, initially designated for specific investments such as gold arbitrage and mining ventures, were commingled with funds from related projects, including Hydro Whales, Burlcore Mining, and Ocean Money. If commingling occurred, such malfeasance could destabilize the financial health of some or all these projects.

3. Inadequate Refund Processes: Refund agreements offered to investors, such as the GSP Refund Terms & Conditions, required investors to waive their right to pursue legal action against the Project 79 team. Refunds may have occurred for some investors, but not for all. These agreements sometimes limit liability while failing to deliver full refunds or transparency.

Representations and Governance Failures 

The founders of Project 79 made several representations that now appear questionable based on the lack of transparency and unmet promises: 

1. Gold Investment Promises:  Investors were assured that funds would be used to purchase physical gold bullion through partnerships with mining operations and refineries. The failure to provide definitive evidence of these purchases raises concerns about the legitimacy of these claims.

2. Lack of Transparency:  Despite assurances of transparency, the response from Project 79’s legal representatives denied all allegations without providing substantive proof of proper fund handling. Additionally, repeated delays and non-responsiveness to settlement requests have exacerbated investor frustration.

3. Governance Failures and Blame Shifting:  The founders’ attempts to distance themselves from Adam Dignam raise questions about his role in the expressed concerns. However, possible governance failures and lack of oversight implicate the broader management team and suggest potential collective liability.

Key Issues Under Investigation 

1. Mismanagement and Potential Fraud:  Our lawyers are investigating whether or not the actions of Project 79’s founders constitute breaches of fiduciary duty and potential fraud. This includes the diversion of funds and failure to fulfill investment promises.

2. Investor Refunds:  Refund processes, such as those outlined in the Tech Gold LLC Refund Agreement, impose conditions limiting investor rights. These agreements fail to address the core issues of misappropriation and lack of transparency.

3. Regulatory and Legal Violations:  The sale of tokenized investments across multiple jurisdictions without proper oversight may constitute violations of securities laws. We are evaluating the enforceability of these agreements and the potential for legal action in various jurisdictions.

Please Contact Us if You Have Any Information

We continue to seek information from anyone involved with Project 79, Hydro Whales, Burlcore Mining, Ocean Money, GSP, and Sahara Star Mining. If you have any details regarding handling funds, contractual agreements, or internal communications, don’t hesitate to contact us. Your information is crucial to ensuring transparency and accountability.