Dear DDK Stakeholders & DDK Partners,
After consulting with our legal partners and advisors and taking into account the DDK community’s concern into consideration, we have made a hard but essentially what we believe is the right deci-sion to reiterate entire DDK Stakeholders on DDK Management stand towards the aggravating circumstances currently happening.
Firstly, DDK Management agreed to be added into one Telegram group for the ease of communication between SIMEX Management Team and DDK Stakeholders for any support on current issues and inquiries about business development and partnerships. The group was created by Mr Denis Kurilchik known to us as the SIMEX’s Chief Executive Officer (CEO) & Member of the Board of Director (BOD). SIMEX’s President, Mr Vassili Oxenux and SIMEX’s Vice President, Mr Dymitri Chirun was also added to the group and in which Mr Dymitri was also made to be one of the group’s administrator. In addition to the DDK Management team of Mr Arai Ezzra (Founder), Ms Nur Ezdiani (Co-Founder) & Ms Nurshuhada (Project CEO), the group was also joined by around 200-300 DDK Stakeholders.
Unfortunately, it has come to our attention that this group recently has failed to serve it purpose as a “proposition for improvements on SIMEX” (Exhibit 1) to when Mr Vassili made misleading statements on DDK directions. In addition to his misleading statements, he also made several accusations towards Mr Arai and DDK as a whole, which was all based on his own personal opinion that has regrettable caused disharmonization of genuine DDK Stakeholders and has created extreme worried among the DDK Stakeholders that this misleading statements and accusations could potentially jeopardise the environment of DDK business and ecosystem.
The listing of DDKoin on SIMEX as an exchange and trading platform on 31st May 2019 runs smoothly up to recent (About 5 days ago from the date this announcement were written) where we believed that the misleading statements and accusation begins to cause critical impacts to the reputation of DDK ecosystem, DDKoin and Mr Arai as a Founder of DDK platform, and that Telegram group has failed to serve its purpose. It will only create further confusions and chaos that will not benefits us and DDK Stakeholders. Our reasons are as below:-
- The Telegram group has been sharing a lot of misleading and vague statements about DDK ecosystem, DDKoin and DDK Technology and SIMEX exchange collaboration and direction for both parties’ business mutual benefits.
- These misleading and vague statements has create disharmonization between DDK Stakeholders, partners, developers and supporters of DDK Ecosystem.
- Majority of DDK Stakeholders has raised their concern on the circulation of these misleading and vague statements and are not interested to be associated with any media channel that is unauthorized and unofficial by DDK Management.
- There are zero observant of business ethics from SIMEX Management team especially Mr Vassili on presenting his personal opinion, as he was very unprofessional condemning DDK ecosystem and DDKoin without any just or proven proofs. He also used the Telegram group as a medium to promote products and projects he has interests in, including his personal products and projects in where he promoted SIMEX ‘s gold backed token named USG. To us, this is a very clear unethical move and a definite conflict of interests, especially after SIMEX offered to list our DinarCoin (DNC) (DNC is a product collaborated with our partner, Harimau Mint Gold (HMG)), which is pegged to value of gold. On the other hand, due to the business strategy and preparation towards documentation, technical development and to finalized proper process flow we put on delay for this listing process until all in place. However, when Simex suddenly came out on promoting own gold backed token name USG, this has violated the business ethics when you not serve the purpose of the group creation which for improvements on simex and DDK. There is a clear violation of partnership and questionable position either Simex want to cooperate with DDK and its community in order to ensure the longevity of business with DDK or just to have a conflict business intention to promote own products which was never endorsed by DDK Management.
- Mr Vassili also have failed to observe his business ethics as SIMEX President by commenting very biasly about DDK ecosystem and DDKoin that was not within the agreed scope of SIMEX and DDK collaboration, for example the most manipulative comments and make false assumptions about the relationship between DDK Management and DDK Developers. To reiterate, DDK developers (Eska Team) are aware and agreed that their payments of services is paying using DDK(DDKOIN) in stages as the deliverables phase achieved and to highlight here that the Pre-mined allocation is solely our rights to utilized for building the ecosystem not just to pay developers, but also for business operations, marketing and projects longevity. The Pre-mined coins that mined in advanced as part of the genesis block is our sole custody and rights to utilized as the Blockchain platform provider that clearly stated in our whitepaper – https://www.ddkoin.com/documentation/DDK_Whitepaper_V1.2.pdf (page73.). In addition, these figure of Pre-mined allocation is a compulsory to declare to CMC (CoinmarketCap) and transparently reported to CMC as the data authority for cryptocurrency project on its distribution amount to meet the CMC Methodology on the listing criteria. Thus, there is no issue on the manipulation that the pre-mined allocation being use by DDK Management and its smoothly distributed within the market on a decentralized basis.
- In fact, to prove that SIMEX management has failed to observe their professionalism and business ethics, Mr Dymitri as VP of SIMEX “invited” most of DDK Stakeholders and DDK official partners into the said Telegram group which we believe with the malicious intention to create disharmonization towards Us and our official partners, as far as we know none of our official partners is SIMEX Stakeholders nor SIMEX official partners. Due to these false statements and accusation, DDK Stakeholders are disputing with SIMEX management team in the Telegram group to the extend causing unhealthy environment. On the same note, SIMEX management does not act as they should by providing the solutions as an Exchange platform where DDK is listed with to DDK stakeholders.
On the other hand, taking into our agreed collaboration, we allowed and agreed that SIMEX Token (SMX) to be promoted to registered DDK users on SIMEX platform. Unfortunately, we believed that SIMEX has violated the collaboration and failed to upheld the transparency of their product, as it has come to our attention that SMX Token credibility is questionable as per below valid reasons:
- There is no proper documentations or Standard of Operating Procedure (SOP) provided to DDK Management officially up to this date even though we have requested several time before we would like to officially entered into the agreement (invest) with SIMEX on SMX Token. In fact, up to this date due to courtesy of partnership, we allow SIMEX team to email directly to DDK Stakeholders, however there are no valid documentation that DDK & SMX Token is in a partnership.
- SMX Token whitepaper is not presented to DDK Management up to this date as this document is very crucial to show the reliability and viability of SMX Token project.
- SIMEX team emailed to DDK Stakeholders registered with SIMEX on 16th September 2019 to give them an idea how “losses of DDK can be reduced by becoming a shareholder of SIMEX by buying SMX Token”, however up to this date we have not received any proper documentation or company prospectus definition on where those shares are distributed to which projects and what are the operation to raise the dividend / profits / value in their official channel.
- In the same announcement emailed by SIMEX on 16th September 2019, SIMEX announced that there is a special promotion/competition to DDK Stakeholders trading all DDK pairs in Simex platform that was launched on 15th September 2019, however up to this date we never received any news of who has been nominated as the winner or any status regarding this trading competition. This trading competition mentioned as below rewards that will be received by winners:
- 1st place – 1,000 DDK
- 2nd place – 500 DDK
- 3rd place – 250 DDK
Due to this scenarios, DDK Management is very disappointed towards the services provided by SIMEX team as at we promote to trade and increase the volume in SIMEX by continuously giving education and efforts of awareness however, SIMEX team does very little to deliver and kept silence on this. As this promotion was also promoted in an official announcement sent to DDK Stakeholders, it will clearly risk our reputations and credibility. Please see the attachment of Exhibit 2 for your reference.
- The strategy of promoting SMX Token towards DDK users on SIMEX is not convincing and the volume of demand towards that token is not satisfied- https://simex.global/en/exchange/simx/btc. Thus, any associated risk of buying SMX Token has been clearly announced in our official announcement that this package or promotion is not our liability. – https://blog.ddkoin.com/2019/09/23/simex-and-ddk-collaborates-offering-higher-investment-opportunities-to-ddk-community/.
In addition, based on our deeper study and research about SIMEX company we have found out that few articles, links and proofs that SIMEX is also not as a reputable exchanges in the market as below:
- There are security and questionable reputation of SIMEX platform that we are currently investigating, as SIMEX was suspended for claiming in a press release that they conducted transactions under Securities and Exchange Commission (SEC) regulations, as link attached – https://news.softpedia.com/news/simex-suspended-by-sec-for-false-initial-coin-offering-ico-registration-claims-523363.shtml.
- SIMEX was also included in the list of Exchanges which are wildly inflated by a combination of fake volume and wash trading that posted by article associated by SEC according to this link. This article also shown that comprehensively examining the bitcoin exchange marketplace for indications of fake volume consists of SIMEX (ranked number 76/Page15) – https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca201901-5574233-185408.pdf . We are aware that currently CMC (CoinMarketCap) has announced on their recent Exchanges & crypto project new methodology of ranking – (https://coinmarketcap.com/methodology/) and liquidity (https://www.google.com/amp/s/blog.coinmarketcap.com/2019/11/11/coinmarketcap-launches-new-liquidity-metric/amp/). Thus we feel that if SIMEX team cannot observed this liquidity metrics, we predicted that the fake volume will impact on our DDK ecosystem as we have currently real traders trading in SIMEX platform.
- It has come to our attention that SIMEX team only consists of six members, to which in our view will not able to provide the best of services experiences to DDK users and this will only cause future inconveniences towards DDK. We engage with SIMEX as the 1st (first) global exchanges listed DDK to ensure the sustainability of the business and future business expansion. However, with the current numbers of growing DDK Stakeholders and traders and our continuous education activities, if SIMEX team does not improve their services, we predict that they are not able to give the best services towards our DDK Stakeholders. – https://www.manta.com/c/mhxyf1c/simex-inc
- We have also decided to further investigate about the credibility of SIMEX on their own SMX Token, in which SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering. In addition, the article also mentioned SIMEX was providing inaccurate and inadequate information about its operations, after acquiring it back in May 2018, as link attached – https://cryptonewsreview.com/sec-clamps-down-on-crypto-exchange-owners-of-false-custody-claims/ & https://davidgerard.co.uk/blockchain/2018/11/05/when-you-sell-tokens-dont-claim-sec-approval-simex-and-bad-ideas/.
- It has come to our attention that SIMEX has announced in the official news that American Retail Group, Inc. (ARGB) announces the completion of the acquisition of Simex Inc. – (https://simex.global/en/news/american-retail-group-inc-announces-the-completion-of-the-acquisition-of-simex-inc-1-1592) However, there are also an article we reviewed that the company ARGB confirmed that the United States Securities and Exchange Commission (the “SEC”) had ordered that trading in its common stock be suspended for the period from 9:30 a.m. EDT on October 22, 2018, through 11:59 p.m. EDT on November 2, 2018. – (https://www.globenewswire.com/news-release/2018/10/23/1625929/0/en/American-Retail-Group-Inc-OTC-ARGB-confirms-suspension-of-trading.html). The SEC ordered the suspension due to concerns about the accuracy of information in the marketplace about, among other things, the company’s products and services and certain regulatory approvals, including statements in Company press releases claiming that the Company had partnered with an “SEC qualified institution” to facilitate cryptocurrency transactions and that it was conducting a token offering that was officially registered in accordance to SEC requirements. In the same article also quoted that, “Vassili Oxenuk, president of the Company stated that “While it remains a goal of the Company to undertake to register an offering of a security convertible into a cryptocurrency for sale with the Securities and Exchange Commission, it is highly unlikely that the Company would do so in the foreseeable future”. Which mean as our attention that Vassili stated clearly he is unlikely to this company to registered a public offering of any of its securities or a cryptocurrency with the SEC. Thus, how SIMEX able to offer the SMX Token towards the public mentioning is as an STO (Security Token Offering) to DDK Stakeholders? DDK Management seems that this may violated the future business expansion in a correct way of doing things, unless its justified.
- We also found out that Mr Vassili has been charged for several securities fraud court cases and complaints, which is very alarming. These reports and complaints can be found on these links – https://www.courtlistener.com/docket/6044378/lozovskyy-v-oxenuk/ &
On the other note, there are few reports from DDK users that the withdrawal process has taken more than 24 hours as promised under SIMEX ‘s SOP (Standard Operating Procedure) and on top of that, it has been questionable as to why SIMEX choose and select only small amount of withdrawal for the fast / immediate withdrawal processing. We have not received any convincing and proper answer towards these inquiries at this moment. Please be informed that we are still in the midst of investigating the situation as well. In fact, after a series of complaints and inquiries from DDK Stakeholders, DDK Management feel responsible to question the credibility of SIMEX team, SIMEX operations and SIMEX collaborations as a whole with us.
Therefore, under this crucial current situation we urge entire genuine DDK Stakeholders, supporters and partners to do this immediate action as below:
- Please focus on official medial social group registered and established officially by DDK Management for a correct and verified information, directions and updates as below:
- To withdraw immediately entire of your asset that has been stored and trade in SIMEX platform until further notice due to questionable credibility of SIMEX which investigated by DDK Management.
- Please do not trade in SIMEX anymore due to these security reasons and for sole protection of your assets. Kindly channel your asset storage and trading with others Global Exchanges platform DDK/DDKOIN has been listed – https://www.ddkoin.com/.
- For any matters or questions regarding SIMEX, please directly channel to their official support and contacts for tracking your cases and issues officially for the specific official regulators / bodies that monitored them (*if further official bodies investigation is needed*).
- Kindly avoid and remove yourself from any FUD information from fake accounts, fake users, and fake news about DDK and its ecosystem. Always directly go to our official channels in seeking updates and latest information.
We hope that entire DDK Stakeholders remain calm as our legal team is smoothly handling this on official basis. Please follow and smoothly follow the above mentioned instructions to secure your assets immediately. We will ensure any actions will be taken in a fair manner and most professional way in order to safeguard our reputation as we are group of professionals, we appreciate and will always ensure that our business and project mission & vision is treated with unbias decision as we are dealing with blockchain and cryptocurrency (open-source) project, and entire DDK Stakeholders are early adopters of DDK Blockchain technology. This is our first time dealing with this kind of situation and it seems to be the first time in the world of cryptocurrency environment that we encounter this kind of situation whereby an exchange platform is creating unnecessary chaos, from their irresponsible baseless statements and accusations towards a blockchain project & cryptocurrency that giving them revenue on a daily basis up to this announcement is written. Our legal team will send an official LOD (Letter of Demand) directly to President & Vice president of SIMEX very soon as an official basis for our further investigation. However, during this period of investigation we will remove SIMEX logo on any current display, promotion, marketing tools and entire marketing material in all of our official education sessions and events.
We also seek a professional action and process from SIMEX team to DELIST us (DDK/DDKOIN), as we see that there are many situations that looks suspicious and malicious towards our future business and strategic planning if we are still in partnership with SIMEX. We have decided to move forward with our business without bringing SIMEX in our collaboration anymore. For DDK Stakeholders, we will ensure that this delisting will not impact our future roadmap and progress of DDK Technology developments that we are executing and currently have planned. We will continuously put efforts to deliver to DDK Stakeholders and community the best blockchain solution platform. We firmly believe that a long term approach to working with a qualified Global Exchanges teams is the key to successfully fostering a healthy ecosystem and providing our community with a variety of sustainable, interesting, and reliable platform to trade.
In summary, please take this announcement as a firm and final decision from DDK Management towards the harmonization of DDK Stakeholders, your asset security, and to ensure that DDK Roadmap will be smoothly delivered to our users.
Your immediate action is required.
DDK Foundation Team with the assistance of;
DDK Developers Team & DDK Advisors Team
Exhibit 1 & Exhibit 2