How the WHACKD Community lost $10,000 of donated funds to P2PB2B

Whackd

16 min readJan 2, 2022

The WHACKD Experience Listing with P2PB2B.

1) This page has been created in the public interest to inform readers of the bad practices that the WHACKD team have witnessed in their short time whilst dealing with the centralised cryptocurrency exchange known as P2PB2B.

2) Secondarily this page has been created to explain to the WHACKD community the specific issues that the WHACKD team has faced in regards to the recent exchange listing.

3) This feels somewhat obligatory as the community had collectively raised $10,000 USD equivalent in Eth through charitable donations to make this listing happen, and it is now wrongfully claimed by P2pb2b.

4) The WHACKD team subsequently entered into an agreement with the company DIGITAL ONE SOFTWARE LIMITED, company No. 2977035 (hereinafter - the 'P2PB2B') on 30 November 2021 at a cost of 10,000 USD in equivalent to ETH to the address -

5) OxeB4F7df37586bd1A94d5e2dacA01382S96A5b30

6) The WHACKD team unknowingly entered the contract with P2PB2B under false representation and thus consider the contract void without consideration.

7) There were multiple breaches of contract that resulted in undisclosed loss to all users of the exchange, damage to the teams reputation, damage to the tokens economy and a loss of $10,000 USD to the community, whilst only gaining one virtually unusable exchange.

8) On 3rd of August 2021 during the pre-contract negotiations a statement of fact was made by the agent of the representor, who was acting within the scope of their authority, and the statement was untrue, on the 3rd of August 2021, during pre-contract negotiations when discussing deposits and withdrawals, the Whackd team inquired if users would face a 20% burn, being 10% Burnt (as according to the smart contract) and 10% burnt (from tokens being sent from the user exchange wallet to the hot wallet) it was also asked if this could be done off chain to avoid the extra burn.

9) 3rd of August 2021, during pre contract negotiations misrepresented terms were stated to the Whackd team by an agent of the representor (@ p2pb2b_vladimir) , who was acting within the scope of their authority,.

10) During pre contract negotiations the Whackd team asked p2pb2b's rep the following.

Ronald Brian Ogwal (WHACKD):
"when a user deposits say into your exchange, a 10% burn will take place automatically. But now what I want to understand is, from the user exchange wallet to the hot wallet, will there be another 10% burn or you guys can do this off chain to avoid the extra burn?"

11) 3rd of August 2021 P2PB2B's rep replied,

Vladimir BD Manager (P2PB2B):
"When the amount will be sent to our hot wallet nothing will be burned. We just receive the amount, So there will be no double-charges"

12) For further clarification we asked

Ronald Brian Ogwal (WHACKD):
"Have you confirmed this with the developers already?"

13) To which P2PB2B's Rep responded with

Vladimir BD Manager (P2PB2B):
"Yes,Sure"

14) This was not the case and was not discovered until after payment, this was a serious misrepresentation.

15) 3rd of August 2021, The Whackd tokenomics were explained to P2PB2B's rep.

16) Ronald Brian Ogwal (WHACKD):
"Now the final issue is with the 1000th transaction getting burnt completely, how will you handle such a situation incase a user becomes a victim?"

17) Ronald Brian Ogwal(WHACKD):
"We have also developed a counter where people can track it from just incase"

18) Ronald Brian Ogwal(WHACKD):
"www.whosgettingwhackd.com"

19) Ronald Brian Ogwal(WHACKD):
"You guys can put a disclaimer regarding that to the users when making withdraw or deposit"

20) Vladimir BD Manager (P2PB2B):
"Sure, we can mention this in the announcements"

21) Ronald Brian Ogwal(WHACKD):
"Not just announcements but on the deposit and withdrawal page too"

22) These terms were breached as the initial announcements made by P2PB2B did not disclose any of the risks involved despite agreement, this resulted in all users of the exchange to become victims of an undisclosed loss of 20% on all deposits and withdrawals.

23) After making these agreements in August it was understood and agreed that the Whackd team would proceed with payment once the funds were raised in the community, both parties remained in contact during this stage.

24) 30th November 2021, After raising the funds but prior to payment it was made clear to P2PB2B;

25) Con (WHACKD):
"Also it must be understood that we are a community project with a core contributor team, we have taken over since the original developers have either died or abandoned the project, we are not the original developers"

26) 30th November 2021 the Whackd team had signed the contract and sent payment of $10,000 USD equivalent in ETH to P2PB2B.

27) The Now Void Contract was first breached by P2pb2b in their failing to fulfil terms that were made, and agreed upon in the pre contract negotiations, the following terms breached were as follows:

i) P2PB2B Failed to inform users directly on the exchange that there was a 1 in 1000 risk of losing 100% of a transaction when making withdraw's and deposits. (despite the $WHACKD team stating this term as a condition of agreement, to which P2pb2b agreed in the precontract negotiations)

ii) P2PB2B Failed to inform users in all of their initial social media announcements that there was a 1 in 1000 risk of losing 100% of a transaction when making withdraw's or deposits. (despite the $WHACKD team stating this term as a condition of agreement, to which P2PB2B agreed in the pre-contract negotiations)

iii) P2PB2B made public social media announcements without any disclaimer to warn the users of the losses incurred when making withdrawals or deposits. (despite the $WHACKD team stating this term as a condition of agreement, to which P2PB2B agreed in the precontract negotiations)

iv) P2PB2B did not display any disclaimer to warn the users of the losses incurred when making withdraws or deposit when using the exchange (despite the $WHACKD team stating this term as a condition of agreement, to which P2PB2B agreed in the precontract negotiations)

28) On the 1st of December after payment, the agent of the representor, who was acting within the scope of their authority (called Yana_P2PB2B) made inquiries to the $WHACKD Team about the $WHACKD tokenomics, despite already having an agreement and assurances that P2PB2B previously understood these points.

29) The agent of the representor, who was acting within the scope of their authority then informed the $WHACKD team of new requirements needed to oblige by in order to avoid additional fees, these New terms introduced by P2PB2B were not mentioned at any time prior to payment

30) Yana_(P2PB2B)

"please let me know if your smart contract has additional fee for sending transactions? If yes, I will ask you to whitelist our HOT wallet."

31) This was not mentioned prior to listing where we were previously assured there would be no double burn, this is viewed as an innocent misrepresentation and an oversight error, but enough to demand rescission of the contract.

32) 4th December 2021 it was finally stated to us that a double burn would apply.
Yana_P2PB2B
"Unfortunately, in this case we are not able to avoid the deposit fees"

33) 4th December 2021 After the Whackd Team raised their multiple issues Yana_(P2PB2B), responded with "Let me proceed with it on Monday, please"

34) 4th December 2021, Yana_(P2PB2B) then posted an announcement on social media in an attempt of damage limitation, the social media announcements this time did mention the 1 in 1000 risk of losing 100% of a transaction, but failed to mention the 20% loss on withdraws and deposits. Again breaching the now voided contract.

35) 6th December 2021 The Whackd Team received the following statement;

36) Yana_(P2PB2B):

"Regarding situation with double commission. The only option is to update your smart contract. You need to copy your smart contract thus you will have the access to it and can whitelist our hot wallet."

37) 6th December 2021 we received the following from Yana_P2PB2B:

"Our team tried to find all sorts of options. At the moment, we only have two . You send us tokens to cover the second commission, but as soon as the tokens on the balance run out, we close the deposits. The second option is to leave everything as it is. Unfortunately, there is no other way to solve this issue.The first option will give the opportunity to reduce commission.The tokens that you will send can cover this commission. The users will have only a 10% commission instead of 20%.And when the tokens will run out we will inform you.After that you will need to send Whackd tokens again. In case if you don't send, we will have to close deposits."

38) The team responded On 6th December 2021

Con $WHACKD:
"I hope this issue is of a high priority to P2PB2B as we had high hopes to working with this exchange. As it stands the $whackd team is now at the point of damage limitation. It was previously stated to us that no double burn would occur, additionally the need to white list was not pointed out to us until AFTER payment. We were also not informed about the additional 10% deposit fee prior to the listing and due to this misinformation we have made decisions based on it, therefore we have misled people to unexpected financial loss and a great deal of confusion, at the expense of our own reputation. If we had received the correct information to begin with we would of been able to make an informed decision, but as we were denied that right, we now find our selves at a great loss due to p2pb2b's oversight errors. It should therefore be in your interest to settle this situation as soon as possible as we feel you have not fulfilled the duty of care and business professionalism, which we do have the right to expect.

we are currently at a $10,000 loss with a virtually unusable exchange we face a loss of reputation and a loss of trust in the community.

If p2pb2b can offer no other alternatives to circumvent these issues the only resolution we seek is a refund.

I hope we can resolve this swiftly and amicably."

39) 7th December 2021, A letter before action was sent to P2PB2B.

40) 10th December 2021, The Whackd Team did not receive any response or an acknowledgement to the letter before action, so one was requested

41) 15 December 2021, P2PB2B made a less than satisfactory response in regards to the undisclosed loss being;

"As for lack of informing we have to mention that involvement in crypto market activities implies certain necessary knowledge of technology, which is usually presumed."

42) This is a truly awful answer as the Whackd team were assured no "double burn" by p2pb2b and relayed that message to their community, P2pb2b states they have the right to presume users were aware of the inevitable loss despite any forewarning.

43) 15 December 2021, the Whackd Teams followed up:

Con (WHACKD):

"P2PB2B failed in this agreement, you did not adequately reflect risks to the users as we had made it clear was a requirement to agreement. The investigation will find these points to be true. We demand a refund before we are forced to go public with these breaches of contract."

44) The response from the P2PB2B rep was an apology and an acceptance of guilt.

Vladimir BD Manager P2PB2B:
"Hello team! First of all, I am sorry that this situation occurred. Indeed I said that there would not be any double charges on the 3rd of august."

45) The response from the P2PB2B rep was also

"we created the announcement in our social media about your tokenomics. So, according to the agreement all the points are done from our side.Still, today I will have additional meeting about the situation with my management and you will receive the answer today or tomorrow maximum.".

46) The response from the P2PB2B rep was also

Vladimir BD Manager P2PB2B:
"there were no points in the agreement that we should announce users about tokenomics. Also, for now tokenomics is not working for trade. We can enable it now and make announcements"

47) P2PB2B's CFO then entered the chat and claimed the following, 15 December 2021

Dima / Listing Supervisor / CFO:
"It looks like blackmail from your side. As if the work from our side had not been done.I don’t see any service that P2PB2B didn’t provide to you per the agreement"

48) 15 December 2021, The Whackd team responded with

Con $WHACKD:
"We are not blackmailing , we wish to resolve this without reputational damage, that is a stated fact. We have been offered solutions to a problem that we were assured would not occur prior to agreement P2pb2b also did not accurately inform us or the users of the associated risks, despite us requesting it as a term of agreement. This resulted in users becoming a victim to the financial crime of undisclosed loss, it is due to the negligence by misrepresentation on the part of P2PB2B that caused this financial loss to a quantifiable number. We can argue this all day, it seems your team does not understand the mistakes they have made? The contract Voided, and it was breached.
Based on this we demand a refund."

49) 15 December 2021 Dima Proceeded to accept guilt and admit that a misrepresentation did occur with the following response.

Dima / Listing Supervisor / CFO:
"You're absolutely right, we told you that "There will be no double-charges" in August - this could be true in case of our exchange wallet becomes whitelisted. I understand this point"

50) 15 December 2021 Dima then Proceeded with,

Dima / Listing Supervisor / CFO:
"there is a note about 10% deposit fee on the exchange deposit webpage. Also your users/traders/holders know about smart-contract's charges, don't they? Please pay attention to the one thing - Vladimir is one of the best BD managers, but сommunication mistakes happen sometimes. Several months have passed since August to remember all the details about previous conversation. This is not an excuse, but I ask you to pay attention to this Just look
My role in this chat - not to looking for any bad communications, blackmailing, etc
My role - find the solution and help you with the situation between us . Of course, there are a misunderstanding about double-burn. Vladimir, P2PB2B exchange team and me are apologize
P2PB2B team is ready to discuss refund"

51) 15 December 2021, In the effort to resolve this ever growing concern as swiftly as possible and to avoid further reputational damage the $WHACKD team requested a partial refund of $8,500 USD equivalent in eth refunded to the address it was sent from.

52) This request was denied and p2pb2b countered with an offer of a $1500 refund, only 15% of what is rightfully owed.

53) the Whackd team replied

Con $WHACKD:
"You are obliged to provide a counter offer. We are legally within our rights to demand a full refund for the breach's of contract, the financial regulations broken and the reputational damage caused as a result of the miscommunication that you now admit fault for. We would agree to a NDA surrounding this too."

54) Going from bad to worse we received the following response from P2PB2B's CFO

Dima / Listing Supervisor / CFO:
"In that case, we are ready to refund the $1000 amount. Please consider it
I'm waiting for your feedback"

55) The $WHACKD team responded with the following

Con $WHACKD:
"The two are very far away right now, to such a degree it seems not a meaningful offer. you feel at a loss, but the following things you MUST consider.

i) You have accepted fault over these issues.

ii) We are legally entitled to a full refund for the issues you have admitted fault for.

iii) We would prefer to avoid taking this through the legal system and we are making every effort to resolve this with you.

iv) We are legally entitled to claim monetary compensation for the damages caused including the loss of reputation and the violation of financial regulations being the undisclosed fee's. (we are willing to not add this into our refund request at this time)

v) We have made a more than fair request considering these circumstances and are willing to even waive our legal right to a full refund if you accept these terms.

vi) We will be adding interest onto the amount owed for every day this is not paid. As is our legal right whilst we are suffering this unresolved grievance.

vii) If this forced to go to a court of law the Judge will not look at these previous 6 points in your favour as you have admitted wrong doing and legally are obliged to provide a full refund. In the spirit of good faith and a to not suffer reputational damage any further We counter with an offer of $8000"

56) Dima Proceeded with
"Hello again, was on a urgent meeting
Well, I got your position. Let's continue the conversation tomorrow. I'll text you right after my meeting with our legal team 🤝"

57) 16 December 2021. After having the same facts, repeated to them in multiple different ways p2pb2b's CFO responded with,

Dima / Listing Supervisor / CFO:
"Based on our yesterday's conversation and having double-checked the situation with our legal team, I have to say that the P2PB2B exchange has fulfilled the terms of the agreement and does not violate them even now. Services are provided in full and we are ready to make step forward to do additional work that will help solve some of the issues that we are now discussing.
In this case, we are ready to take an extra step and offer a refund of $1000."

58) 16 December 2021, The Whackd team replied with,

Con $WHACKD:

"We entered the contract under misrepresentation. You admit there was the miscommunication legally speaking that is the equivalent to a misrepresentation. It is a false statement of fact made by one party to another, which, at the same time as NOT being a term of the contract, encourages the other party to enter the contract. The impact of an actionable misrepresentation is to make the contract voidable, giving the victims the right to withdraw the contract and/or claim damages. We now revert our claim to the statutory $10000 USD equivalent in ETH, Due to your response and actions in this matter we feel this is more than fair."

59) 16 December 2021, The Whackd team followed up with

Con $WHACKD:
"i hope you have thoroughly read and understood everything i have provided here. To reiterate an important point we would like an official statement from p2pb2b (which we can share with the community) in which you again state that a miscommunication / error had occurred on your side. We need this as we have been called scammers and faced a great deal of criticism as a result of these oversight errors. These oversight errors resulted in undisclosed loss to users, misrepresentations in the precontract negotiations and breaches of contract which are now overruled by the contract being voided due to the afore mentioned misrepresentations.
With this being documented fact, we are well within our rights to demand a full refund from winding back the contract, compensation for these damages and the right to expose these bad practices in the public interest. At this stage however all we ask is for a full refund, as is our legal right $10000 USD Equivalent in ETH"

60) The negotiations then soon broke down as it was clear that P2PB2B were unwilling to move from their unreasonable position of a 10% refund, despite admitting fault and apologising for the stated misrepresentations.P2PB2B replied with,

Dima / Listing Supervisor / CFO:
"With all our respect to you, we cannot continue the conversation this way, since you are now accusing us of fraud.
We offered you several ways of resolving the situation and to our regret, non of the variants suits you at a moment.
We really tried to help and did our best to resolve the situation.
We are open to resolve the issue in reasonable ways we proposed.
For more detailed information, you can contact legal@p2pb2b.io"

61) 17 December 2021, The Whackd team made the following request,

Con $WHACKD:
"I require speaking with a representative that is of a higher status than @Dima_P2PB2B is there anyone available today."

62) P2PB2B then refused to continue discussions in the Telegram chat and later blocked a $WHACKD core member from P2PB2B'S official telegram channel for asking the P2PB2B admin for the contact details of the highest authority at P2PB2B, a request which they have still failed to resolve or seriously address.

63) On 21st December 2021 the Whackd team requests a reply to the letter before action that was sent on the 7th December 2021 which was seen but ignored.

64) As it stands P2PB2B accepts that a misrepresentation did occur yet denies the Whackd team their right to wind back the contract and claim a full refund, this means P2PB2B are knowingly and willingly denying the $WHACKD team of their statutory right to a full refund, by extension they are stealing from the $WHACKD community members who each donated funds on the understanding that they would receive a successful listing for $WHACKD on the CEX, as it was sold to them.

65) P2pb2b had additionally breached the now voided contract in multiple ways and have shown many bad practices in not resolving these issues, it is reasonable to conclude that P2PB2B is acting in bad faith and calls into question if they are a fraudulent scam.

66) Everything claimed in this thread is based upon statements of fact and the $Whackd team feel disclosure of this basic information is in the public interest

67) There are concerns that legal disputes may arise over specific disclosure, due to terms stated in the contract (Fines of $100K) but the $WHACKD team considers the contract void without consideration, hence here you are reading this.

68) An additional message to the Crypto Community; this may not the biggest story in this space, but it does affect our entire ecosystem when bad actors are allowed to operate in the marketplace with so little pushback or resistance, it is up to us, the people, to clean up this mess.

69) Make a stand with the $Whackd community against the bad practices of these shady centralised exchanges.