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The developer of the cryptic shooting game "Shrapnel," Neon Machine, has been exposed to be in financial crisis

ChainCatcher news, according to Blockworks, the developer of the crypto shooting game "Shrapnel," Neon Machine, is facing serious financial difficulties. So far, the company has spent nearly $86.9 million in operating funds, with projected revenue of $21.7 million for 2024, but high operating costs of about $33 million have prevented it from becoming profitable, resulting in a net loss of $11.4 million.Sources say that Neon Machine's monthly cash burn is as high as $2 million to $3.5 million, and it is currently in a state of cash depletion, with significant unpaid debts, owing millions of dollars to external suppliers. The company’s new round of financing, originally scheduled for early 2025, has also failed to materialize. Previously, the company completed a $20 million Series A funding round in October 2023, led by Polychain Capital.Moreover, the company's workforce has sharply decreased from nearly a hundred at its peak to just over a dozen, with very few people actually involved in the development of "Shrapnel." To extend its cash flow, the company has implemented at least three rounds of layoffs and has asked high-salaried employees to voluntarily take a pay cut of about 20%. The Seattle headquarters was also closed at the end of March.Despite this, the company still claims to be "in the strongest position ever" and plans to launch "Shrapnel" globally by the end of 2025. However, several insiders close to Neon Machine are skeptical about whether the game can be launched smoothly, stating that the project is not yet complete and funds have been exhausted.In addition, according to People's Daily - Jinbao News, Lingjing People's Game Laboratory held talks with the creative team of "Shrapnel" (tentative Chinese name: 弹片), reaching a preliminary cooperation intention on issues such as the minting and distribution of game digital assets in the Chinese market, compliance circulation, and market operation.

A man in Xiamen was prosecuted for theft for stealing someone else's virtual currency

ChainCatcher news, according to Xiamen Evening News, a man stole virtual currency from others and cashed out over 1.6 million yuan after incurring losses while helping a friend invest in futures. Recently, the Huli District Procuratorate in Xiamen, China, reviewed and prosecuted this theft case.In September 2021, the defendant Chen met the victim Hong through a friend's introduction. Hong entrusted Chen to help operate virtual currency investments and provided his account and login password.At the end of September 2022, Chen fabricated a story about the account being offline to trick Hong into providing various verification codes. He then successfully changed the account's login password and replaced the linked email with his own. At this point, Hong's account was under Chen's control.After that, Chen repeatedly used the excuse of the account being offline to deceive Hong into giving real-time verification codes, continuously transferring the virtual currency from Hong's account to his own. He then quickly sold these virtual currencies for a profit of over 1.6 million yuan, using all of it to repay personal debts.In May 2024, Chen voluntarily went to the police station to confess and truthfully admitted to his crimes.The Huli District Procuratorate filed a public prosecution against Chen for theft. According to Article 264 of the Criminal Law, theft of public and private property, with particularly large amounts or other particularly serious circumstances, is punishable by more than ten years of fixed-term imprisonment or life imprisonment, and may also involve fines or confiscation of property.
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