Composable Finance’s chief technology officer Karel Kubat announced that he is leaving the company amid a lack of financial transparency and ‘suspicious transactions’.
I, Karel Kubat, am resigning from Composable Finance for the following reasons:
— Financial statements have not been provided to me or the community. The community and I have no current overview of Composable Finance financial health.
— 0xkaiserkarel (@0xkaiserkarel) February 20, 2023
Among his grievances against the leadership of the DeFi project, he also cited:
- failure to provide the community with a financial health report;
- absence of asset management for the startup via multisig-wallet;
- alleged use of the company’s funds for trading.
I am guided by my moral compass. That means honesty and transparency for developers and the community
Kubat said.
In his view, Composable’s CEO Omar Zaki violated the rules of the SEC during the Series A funding round.
The startup confirmed Kubat’s departure and assured that the company has sufficient funds to continue operations.
1/ We’re sorry to announce that Composable Finance has parted ways with our former CTO.
While this naturally prompts questions and concerns, our team is committed to addressing these questions and alleviating any concerns.
— Composable Finance (@ComposableFin) February 20, 2023
During an AMA, AMA Zaki rejected all claims against the former CTO. He said the company is private and not obliged to disclose financial information. In his words, fundraising complied with U.S. regulatory rules and occurred outside the country.
The head of Composable also denied any involvement in the allegedly fraudulent Bribe project, which had previously been highlighted by well-known on-chain researcher ZachXBT.
According to DeFi Llama, the total value locked in the protocol stands at $744 120. In October 2021 at its peak the figure reached $56 million.
As noted, Composable was among the winners of the parachain auctions for the first slots Polkadot.