In light of recent events, coinciding announcements and our promise to further transparency, we wanted to share this company announcement with you to provide a clearer view of both the past and the present. We have heard your questions, and have endeavored to address them in the following statement. We hope that this shines a light on what has transpired, our reasons for delaying announcements, and allows us to begin earning your trust and confidence again as we embark on our journey forward.
As we brought up in the recent AMA in Discord, we have been working on significantly upgrading our blockchain infrastructure for some time now. This has been brought on by not only the inspiration from meeting with Web2 tech companies such as True Digital and Alibaba but also our continuous mission to create the most user-friendly and enterprise focused blockchain.
When the time comes for us all to move onto the new blockchain, we will provide sufficient time on when the migration will happen. The migration will include all current Redlight assets (including but not limited to, REDLC, DAWN, RLL and Validators).
REDLC will be migrated into a new governing coin for the Epitome blockchain. Dawn will be converted to a new DEX token representing the new rebranding platform name and existing tokens to be migrated. RLL will be migrated to a new NFT, and continue to carry utility and benefits across multiple avenues in our ecosystem. Redlight Validators will be migrating to the new Blockchain. The infrastructure of the validators have gone through a number of improvements and the new architecture has been designed in line with the implementation of the new Blockchain. More information will be provided to the validators in a separate announcement about how validation will work in detail.
All of the relevant information surrounding the plan for migration, such as timelines and ratios will be released at the appropriate time, when development is further along and we have the ability to give more precise updates.
In regards to the recent announcements relating to Alex, we wanted to shed more light on this situation.
Alex was tasked with managing the validator payments and documentation that was passed to our development house to add them to clusters for activation and maintenance.
It was very recently that we were contacted by concerned investors, where we were made aware that Alex was allegedly providing different wallet addresses for the funds intended for Redlight. This has now been confirmed and is part of a much bigger investigation that is currently taking place internally.
We were advised by our legal team not to actively release unnecessary information around company owned wallets. We are a private limited liability company and not a publicly operating one and therefore have absolutely no requirement to release this information. Regardless, The wallets were released by Alex in Dusk’s Discord.
Naturally, this makes it difficult for us to be transparent on the subject due to its legal nature and we will not make any further comment on this while the investigation is taking place.
We have not been able to release all the information about the Spain situation due to the suggestions by legal and governmental entities. That said, we have released the report number which is: NFRC221205538756. The report was filed in the UK and the UK and Spain authorities are working together on the case. We had maintained contact with the same individual that Alex had recommended at the time for private investigation. However, communication fell after the individual advised us to keep everything confidential and not release any information about the case and to continue working together with Governmental entities.
As mentioned prior, we are currently in the process of an internal audit and therefore will not be able to comment fully about stolen funds. We did have both our private investigators working on the Spain case as well as ones supplied by the Government. The people behind the Spain case are involved in a lot of other cases and are professional scammers. They operate mostly in Europe and have warrants on them.
At the time of publishing this article, the only form of external revenue coming into the company is from the remaining KMC NFTs. Due to this, we have not continued to add these to the rebate. Adding KMC NFTs at the moment is simply not viable as the money generated from KMC is being utilized to pay our operational expenses. When the time is right and the company is in a profitable position, we will make further communication with regards to the rebate and KMC NFTs. Currently, we are working on several pending deals when it comes to Epitome Cloud to bring in new revenue.
As we are building and refining our new blockchain, the limited resources we have are being utilized to continuously expand the sandbox that we are using to pitch our new blockchain to enterprises. This explains the delay in other aspects such as ERC-1155 integration for Midnight Trades and Pinnacle Staking, and emphasizes that our main focus is on delivering qualitative products.
As we develop into a new brand and project, we have decided to rework Pinnacle Staking to be a much more simple concept and protocol to be released with the new DEX as a Protocol as a Service, which should theoretically boost profits for the company as well
Having learned from past mistakes, we are committed to prioritizing internal processes surrounding security, access, and accounting of company funds. To enhance our measures, we will be implementing Multisig Wallets and enforcing stringent accounting procedures to meticulously track every transaction. In instances where the company sells assets to the community, we will exercise greater diligence and will be implementing project specific contracts that hold the individual responsible for all movements of that sale.
While a multisig is a very good security measure and something going forward we will be implementing, the way the unaccounted funds were misrouted means that a multisig would not have assisted in this situation. The funds never reached the destined wallet (Redlight) as they were sent to an external (non Redlight owned) wallet directly.
The new blockchain will be audited by a highly reputable company within the crypto space. They have done bug-bounties and have been recognized for their work with Google, Huawei and Apple. They are also part of the security council of one of the most prominent blockchains in the world. Very tight-knit NDAs are being built and once all the relevant documentation is in place we will provide more information around this.
In the interest of separating situations, we will be releasing separate announcements in due time to outline more information around the new projects and plans that we currently have underway in more detail. The aforementioned announcement will not have timelines, but will give more information on what we have been building and working towards. The entire team is briefed on conversations that happen with anything that has to do with Business Development.
In the past we have unintentionally underestimated internal timelines which has led to additional stress on the community, our dev house and ourselves. To alleviate this, moving forward we will not be providing deadlines until the work is at least 90% completed and we are at a stage where we will start having talks with our PR firms to mainstream our products. This is not because we do not want to be transparent but rather because we do not want to create a cause for speculation that may be impacted by internal timeline extensions. The blockchain space is very volatile and circumstances change every day. We do not want to provide you with more words as to why you should trust us; we want to work our way to earn that trust back. We have also become significantly more organized internally thanks to CRMs and more communication channels with our development team.
As we move forward, we endeavor to provide you with more updates as progressions eventuate internally to help you all understand what the current situation is and what the path forward looks like. However, we will refrain from commenting on upcoming announcements/news/partnerships until after an official statement has been released publicly.
We would like to thank each and every one of you for not only taking the time to read through this statement, but for continuing to stand by our side as we turn over a new leaf as a company and begin to focus on what we know how to do best, building revolutionary technology that has the potential to change the way Web3 is integrated in our day-to-day lives.
~Redlight Team~
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