The future of Mongolian CS:GO team IHC Esports could be in peril after a number of people tied to the organization were arrested in a scandal that is shaking up the Asian crypto market.
The UB Post, an English-language newspaper in Mongolia, reported on February 3 that three of Ih Bit Global’s founders had been arrested at the beginning of the month following complaints from a series of customers who had purchased the company’s crypto token, called Inflation Hedging Coin (IHC).
Ih Bit Global CEO Gantig Bayarmagnai, COO Munkhjin Otgonbaatar, and chairman Erkhembayar Bayarsaikhan face “charges of misappropriating funds” from the IHC coin and “laundering the income earned by manipulating the market”, according to the article.
On its official website, IHC is described as “an alternative investment token positioned to increase its value by continuously burning itself following multiple burn protocols.” The token has tumbled as much as 97% since it began trading, according to Coinbase.
The UB Post spoke with representatives of a number of customers who have lost large sums of money. “The people who created the IHC coin often make stories on the Internet and build trust,” one representative is quoted as saying. “They said ‘It is a gold-backed coin that would not fall from its issued price. Take it even if it falls.’ I had money in my account so I took it every day. I believed in what Otgonbaatar Munkhjin was saying. 142 million MNT ($40,488) reduced to two million MNT ($570). There are probably thousands of victims like me.”
IHC Esports future in doubt
The news of the arrest of three of Ih Bit Global’s founders raises questions about the future of IHC Esports, who have recently risen to prominence thanks to their CS:GO team’s international results.
Ih Bit Global entered esports in December 2021 through a partnership with Mongolian esports organization ZEUS Esports, which rebranded to IHC Esports as part of the deal.
Earlier this month, IHC’s CS:GO team finished 9th-12th at IEM Katowice after defeating paiN, FURIA and Cloud9, before falling to FaZe. They are currently 21st in HLTV.org’s world rankings.
The Mongolian team have become a regular at international CS:GO events, attending the two most recent Majors, PGL Major Antwerp and IEM Rio. IHC couldn’t go beyond the Challengers Stage at either event.
IHC Esports have not yet commented on the arrest of Ih Bit Global’s founders. The organization also competes in PUBG Mobile, and has betting company 1xBet, cryptocurrency exchange X-META, and sports manufacturer Puma as its other partners.
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