How YRAL.AI Exploited the SNS FuelEV Sale

General
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Fraud Investigation Report on SNS FuelEV Sale

Introduction

This investigation is a derivative of a discussion raised here.

This report details the investigation into the fraudulent activities carried out by YRAL.AI (formerly known as HotOrNot) during the SNS FuelEV sale. The aim is to gather all available facts and expose the methods used to manipulate the sale.

List of Principal Participants

The following wallets (with their Direct Commitment, ICP) participated in the SNS FuelEV sale. (Note: The wallet ljxsi-5du4w-3se32-vba6v-dd543-rrj3g-nayx2-f7xhd-o4u7a-ycmxw-bae with 7,110 ICP – associated with @borovan – is excluded from this investigation)

Wallet Address Direct Commitment (ICP)
mxdob-jhdxa-6oxow-rjk5x-b5frs-k7kno-oxics-tmcky-5f62q-n6biy-bae 7,499 ICP
rxom7-w4otd-lfmpa-c4wcs-gugja-2bvdz-x3rqy-ytcu3-b3lew-lxdq3-aqe 6,550 ICP
yvm75-incaw-n5bvx-so7pi-3x255-harni-avdmu-wwwuq-34dnt-j3ngi-tae 6,401 ICP
nwzvm-zhkur-grqnz-dmd7t-vxcpm-hm6pw-guwei-jehi3-lbhjq-dubuo-hqe 6,051 ICP
u5ha5-f6l7r-2lccy-5juy3-cjy6j-5zwdu-aj2jq-k42nd-q6754-g2nlv-vqe 5,906 ICP
k5btm-ye75h-tle5b-6j7js-4yjol-clmr7-waklm-dsnuc-ztdjz-bcumn-kqe 5,850 ICP
zfeqd-7bvoc-w7uki-rsbe5-v2hmh-qdljb-dilke-voc7b-edgr3-gx2rq-eae 5,421 ICP
nkgwd-q2scf-xqmet-d6cqr-gjy7x-zl5hv-ou3am-cc7qv-knsun-pafav-rqe 5,401 ICP
7c6eh-ijdxj-clnm5-o5id4-okihg-7t7py-awb54-3xkgp-fozce-2ow3y-yae 5,353 ICP
dbxmv-nuiwm-by426-s4xho-z2yc3-pnx5e-lqg7d-lckoc-v3bwx-jk2rz-yae 5,152 ICP
f24se-aqlch-xcvbi-wpnvh-drc7u-y5iwc-j4dqu-ypieo-jd5zj-fy2nt-sae 4,951 ICP
xok3x-6iebj-6tnrt-sjojg-lwl4f-fet2c-n7ths-nowsx-ckbju-usylg-rqe 4,851 ICP
ydpn6-ln4nv-t7kmh-hambb-moqqu-ljjh5-3oceo-l5qhy-sclu2-mbn4p-uae 4,552 ICP
kdczq-hbrvt-lkcjq-3nbj6-wncsw-aufk2-hzipy-pune6-fkwy4-txfbd-vae 4,352 ICP
pcmrk-zlxbd-n5etg-2dbx3-2heh6-x2myu-5h5hs-drbe6-oolgu-icfim-cqe 3,951 ICP
a63hx-2dcni-nygvf-z3bw6-qsk46-l6fs7-pbefc-pzz6l-57c7d-sz5v2-6qe 3,850 ICP
xrph2-ynxnl-eili5-bx2e5-ogq7h-inyfu-p4kdt-2na5z-vgatm-ke7er-iae 3,807 ICP
6pdwu-4nawt-a5ys3-jgugs-parbl-kuz64-fgm65-vsa6a-n5tv2-mnjb7-6qe 3,570 ICP
3432s-zawvm-axell-ve6pg-v3eku-qjsqc-m4bul-gqidy-f6uli-unugn-zae 3,354 ICP
drsyo-ayuzr-mm24v-ly3df-peisl-umxau-b5pxo-6um34-rklfb-dbjzb-2qe 3,203 ICP

Transaction Pattern and Linking

All of these participants followed a similar pattern when funding their wallets:

  1. Test Transaction:
    A test transfer of 1 ICP from Kraken using the address:
    040834c30cdf5d7a13aae8b57d94ae2d07eefe2bc3edd8cf88298730857ac2eb.

  2. Funding Transaction:
    A subsequent full transfer from Kraken using the same address.

  3. Intermediary Transaction:
    In 13 out of 20 wallets, a third transaction was routed through a temporary (intermediary) wallet to a linking wallet:
    6fb8499c870ec04297d9b0a0194d836fc05da4a68cc3ada493d39a77b00b8091.
    The amounts transferred via this intermediary ranged between 99 ICP and 396 ICP, summing up to 2,523 ICP overall.

Key Transaction Events

1. Linking Wallet Transfers

2. Inflows and Outflows on Wallet 1

  • Inflows:
    Before the 2,499 ICP transfer, Wallet 1 received two major transfers:

  • Outflows:
    At the same time, the exact amounts were transferred from Wallet 1 to Kraken exchange (using the address:
    040834c30cdf5d7a13aae8b57d94ae2d07eefe2bc3edd8cf88298730857ac2eb):

    IMPORTANT! These transfers occurred between 07:53 AM and 08:09 AM UTC on January 12, 2025.

3. Source of Large Sums (Wallet 2)

4. DOLR AI Governance Canister Involvement

Date and Time Analysis of Transfers

All 20 investigated wallets exhibit overlapping transaction dates and times. The critical time window, common to all wallets (specifically in Group 2), is from 07:59 AM to 12:50 PM UTC on January 12, 2025.

Below is an overview of the grouping (1 through 12) based on transaction dates:

| Wallet ID                                                           | ICP    | Groups                |
|---------------------------------------------------------------------|--------|-----------------------|
| mxdob-jhdxa-6oxow-rjk5x-b5frs-k7kno-oxics-tmcky-5f62q-n6biy-bae     | 7,499  | 1, 2, 3, 4            |
| rxom7-w4otd-lfmpa-c4wcs-gugja-2bvdz-x3rqy-ytcu3-b3lew-lxdq3-aqe     | 6,550  | 2, 5                  |
| yvm75-incaw-n5bvx-so7pi-3x255-harni-avdmu-wwwuq-34dnt-j3ngi-tae     | 6,401  | 1, 2, 6               |
| nwzvm-zhkur-grqnz-dmd7t-vxcpm-hm6pw-guwei-jehi3-lbhjq-dubuo-hqe     | 6,051  | 2, 7, 8               |
| u5ha5-f6l7r-2lccy-5juy3-cjy6j-5zwdu-aj2jq-k42nd-q6754-g2nlv-vqe     | 5,906  | 2, 7, 8               |
| k5btm-ye75h-tle5b-6j7js-4yjol-clmr7-waklm-dsnuc-ztdjz-bcumn-kqe     | 5,850  | 2, 4                  |
| zfeqd-7bvoc-w7uki-rsbe5-v2hmh-qdljb-dilke-voc7b-edgr3-gx2rq-eae     | 5,421  | 2, 5                  |
| nkgwd-q2scf-xqmet-d6cqr-gjy7x-zl5hv-ou3am-cc7qv-knsun-pafav-rqe     | 5,401  | 1, 2, 6, 9            |
| 7c6eh-ijdxj-clnm5-o5id4-okihg-7t7py-awb54-3xkgp-fozce-2ow3y-yae     | 5,353  | 2, 3, 10              |
| dbxmv-nuiwm-by426-s4xho-z2yc3-pnx5e-lqg7d-lckoc-v3bwx-jk2rz-yae     | 5,152  | 2, 4, 10              |
| f24se-aqlch-xcvbi-wpnvh-drc7u-y5iwc-j4dqu-ypieo-jd5zj-fy2nt-sae     | 4,951  | 2, 5, 8               |
| xok3x-6iebj-6tnrt-sjojg-lwl4f-fet2c-n7ths-nowsx-ckbju-usylg-rqe     | 4,851  | 2, 4, 8               |
| ydpn6-ln4nv-t7kmh-hambb-moqqu-ljjh5-3oceo-l5qhy-sclu2-mbn4p-uae     | 4,552  | 2, 3, 6               |
| kdczq-hbrvt-lkcjq-3nbj6-wncsw-aufk2-hzipy-pune6-fkwy4-txfbd-vae     | 4,352  | 2, 5, 6               |
| pcmrk-zlxbd-n5etg-2dbx3-2heh6-x2myu-5h5hs-drbe6-oolgu-icfim-cqe     | 3,951  | 1, 2, 8               |
| a63hx-2dcni-nygvf-z3bw6-qsk46-l6fs7-pbefc-pzz6l-57c7d-sz5v2-6qe     | 3,850  | 2, 11                 |
| xrph2-ynxnl-eili5-bx2e5-ogq7h-inyfu-p4kdt-2na5z-vgatm-ke7er-iae     | 3,807  | 2, 8, 12              |
| 6pdwu-4nawt-a5ys3-jgugs-parbl-kuz64-fgm65-vsa6a-n5tv2-mnjb7-6qe     | 3,570  | 2, 11                 |
| 3432s-zawvm-axell-ve6pg-v3eku-qjsqc-m4bul-gqidy-f6uli-unugn-zae     | 3,354  | 2, 10, 11             |
| drsyo-ayuzr-mm24v-ly3df-peisl-umxau-b5pxo-6um34-rklfb-dbjzb-2qe     | 3,203  | 2, 6, 11              |

Example:

image
image1752Ă—815 327 KB

Summary of Findings

  • Misappropriation of Funds:
    YRAL.AI (ex. HotOrNot) misused DAO treasury funds, channeling 100,000 ICP through fake wallets funded via Kraken.
    Given that the total Direct Commitment was 117,229.73 ICP, after subtracting 100,000 ICP (and 7,110 ICP from borovan), the FuelDAO effectively collected only about 10,000 ICP legitimately.

  • Accusation:
    Based on the evidence, I accuse YRAL.AI (ex. HotOrNot) of fraud, aimed at seizing 88,169.69 ICP from the Neurons’ Fund Commitment.

Call to Action

  • Boycott:
    I urge the community to boycott YRAL.AI and all associated projects.
  • Refund:
    Demand that the full amount of 88,169.69 ICP be returned to the Neurons Fund.
  • Project Removal:
    Call for the removal of the SNS FuelEV project from the Internet Computer (IC) network.
  • Fund Redistribution:
    Propose that the total collected funds of 117,229.73 ICP be redistributed proportionally to all sale participants (excluding the 20 wallets under investigation).

Additional Information

  • Drafts:
    The drafts of this investigation are available on my Miro board
  • Support:
    If you find this work valuable, please consider buying me a coffee:
    aiuxi-qgbbo-2bls4-7ac4x-suec5-bo6mm-zq6yh-asr25-iug6d-s7csv-jae

This report is intended to expose fraudulent practices and demand accountability. All transaction links provided are for transparency and independent verification.

31 Likes
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@saikatdas0790 @rosarp

Any words?

6 Likes
6

This is amazing. Thank you, David, I’ve sent some ICP to you.

14 Likes
7

wow thanks a lot for sharing your findings. Really appreciate.

5 Likes
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I can’t believe that dfinity did nothing about this

4 Likes
13

Honest question, what could they have done?

1 Like
14

Can you or somebody else do the same sort of digging for the other suspicious SNSs? I’ll happily pay a bounty, or a twix or whatever you want really.

12 Likes
16

Trying to flag and hide the research will only spark more fuel for the fight against the corruption here. Nice move.

7 Likes
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@diegop can you unflag this post at your earliest convenience? I think it’s important for this information to be made known to the community.

6 Likes
19

If the funding contribution ratio is restricted to below 25%,the fake SNS will automatically disappear.

3 Likes
20

Yes i will repost it, to get the community look at the findings

3 Likes
21

Weird that this thread is being flagged.

An idea for the neuron fund;
I think the SNS swap itself should remove any association with the neuron fund and after a successful swap the SNS get’s a “voucher” to do an proposal to the NNS to get a neuron fund allocation on the same terms as calculated now.

Then neuron fund participants or ICP neuron holders can vote on it.

10 Likes
22

A community member flagged the initial post as Spam. A mod rejected the flag a few minutes ago

11 Likes
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Agreed, the Neuron Fund should have never been decided by the entirety of the NNS to begin with - why does anybody other than it’s participants have a vote over what it does?

8 Likes
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Will Dfinity now look into the serious accusations of basically fraud and or icp washing? those funds where misplaced, think this deserves a deeper look from the officials into how things are done here, PersonalDAO just cracked almost 11k ICP on the SNS organically, which is more than this after you exclude the Fraud (if proven right) and we did not get any Neuron fund commitment, Personally I think some things should be reviewed, real projects are not threaten the way they should.

2 Likes
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People have been pinged. I don’t think I would hear about ongoing investigations so I don’t know what’s happening.

2 Likes
26

Wow thank you for your detailed findings!

Please check other Sns
We need your detective work!!

1 Like
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Please keep the discussion civil and allow time for the other side to respond (should they choose to do so).

29

:neutral_face: I will have to duplicate this in other places. UPD: a mod rejected the flag, ty

ESTATE DAO.. I concluded that, considering how the SNS sale went, it is simply an unsuccessful investment for a private individual. However, there are other aspects that need to be examined.

Ok. I need to finish reviewing EstateDAO and YRAL. After that, I can focus on another SNS project: identify transactions, connections between them, trace the sources of funds, analyze the backgrounds of individuals and their connections, the projects they’ve worked on, and what they’ve achieved, but there may also be dead ends. Not every topic will yield such clear results as this one.

Which projects need to be examined?

P.S. Thank you for the tip! I’m enjoying this cup of espresso in your honor!

9 Likes
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Amazing reserch you have done . Everone can see that this project are malicious and without real users and traction . Its just to extract value from the ecosystem . We need more researchers like this and transparency.