Did This Cryptocurrency Devs. Lie to the US Government for COVID-19 Relief Fund?

Out of 660,000 application of the Paycheck Protection Program (PPP) from the CARES fund (Coronavirus Aid, Relief, and Economic Security (CARES) Act more than 75 start-ups are working with cryptocurrency and Bitcoin. The report released by the SBA reveals the details of the $700+ billion fund.

According to the report, the owner of the Electric Coin Company the developer of Zcash is a ‘Hispanic, female.’ This is not true as Zooko is the owner of the ECC. The incorrect details could put ECC at an advantage because of wider relief for such owners. However, according to the company’s recent report, it is incorrectly cited on the website.

Peter Todd, an Applied Cryptography Consultant, who recognized the filing cites in a twitter update,

Zcash’s Electric Coin Company confirms that their Paycheck Protection Program application as a female-and-hispanic-owned was incorrect. They claim the application was due to low ZEC prices ($300k/month average deficit in 2019). However, ZEC had rebounded by the loan date.

This is significant as the Government agency did not disqualify ECC based on the nature of the business or the reason of low prices of its’ cryptocurrency, ZEC.

COVID-19 Paycheck Protection Program

There are a number of firms working in the cryptocurrency and blockchain industry who have applied for the loan. Some of the leading entities among them are, ConsenSys (blockchain and crypto development firm), Bittorrent, Bittrex (crypto exchange), ShapeShift, Civic Technologies, CipherTrace (crypto and blockchain analytics) and so on. 

The amount of the loan is determined and limited by the monthly average payroll cost in 2019, multiplied by 2.5, up to a maximum of $10 million. From sole proprietors to small businesses, all entities are eligible for the loan.

The Electric Coin Company report cites that it spent $710,000 a month in operating expenses in Q4 2019. And, separately distributed $127,800 a month in employee incentive compensation.

The deadline to apply for a Paycheck Protection Program loan has been extended until August 8, 2020. The competition in the silicon valley and for the interest of the stakeholders and employees, it becomes imperative for teams to apply for the fund, else risk growth or even worse bankruptcy.

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