IHC Esports in Jeopardy: Mongolian CS:GO Team’s Future Uncertain After Founders’ Arrest

Mongolian CS:GO team IHC Esports may be in jeopardy after several persons connected to the group were detained in connection with a crisis rocking the Asian cryptocurrency industry.

According to a February 3 article in the English-language newspaper The UB Post in Mongolia, three of Ih Bit Global’s founders were detained at the beginning of the month after receiving complaints from several customers who had bought the company’s cryptocurrency token called Inflation Hedging Coin (IHC).

In addition to the story, Ih Bit Global’s CEO Gantig Bayarmagnai, COO Munkhjin Otgonbaatar, and chairman Erkhembayar Bayarsaikhan are accused of stealing money from the IHC coin and laundering profits via market manipulation.

IHC is referred to as “an alternative investment token positioned to raise its value by continuously burning itself according to numerous burn protocols” on its official website. Since it started trading, the coin has fallen as much as 97%, according to Coinbase.

The UB Post spoke with several customer representatives who have suffered significant financial losses. One spokesperson says, “The folks who established the IHC coin frequently tell tales on the Internet and build trust.” “They claimed that the coin was backed by gold and that its issued price would not change. Even if it falls, take it. I took it every day because I had money in my account. I agreed with Otgonbaatar Munkhjin’s assertions. They were reduced from 142 million MNT ($40,488) to 2 million MNT ($570). Many thousands of victims like me exist.

Future of IHC Esports in doubt

Concerns about the future of IHC Esports, which has recently gained notoriety in part because of the success of their CS:GO team, are raised by the news of the arrest of three of Ih Bit Global’s founders.

Is Bit Global entering the esports industry in December 2021 due to a cooperation with the Mongolian esports group ZEUS Esports, which underwent a rebrand as part of the agreement?

IHC Esports signed Checkmate, the top CS:GO squad in Mongolia, in March 2022. According to a CSGO2ASIA post, Mr. Otgonbaatar, one of Ih Bit Global’s founders, was IHC’s, Chief Financial Officer. It’s unclear whether he’s still connected to the group.

IHC’s CS:GO squad competed at IEM Katowice earlier this month and placed 9th–12th, defeating paiN, FURIA, and Cloud9 before losing to FaZe Clan. They are now ranked 21st globally by HLTV.

With appearances at the two most recent Majors, PGL Major Antwerp and IEM Rio, the Mongolian squad has established itself as a regular at international CS:GO competitions. At each round, IHC was unable to get past the Challengers Stage.

The PUBG Mobile squad from IHC Esports finished fifth at the PUBG Mobile Global Championship 2022, which was hosted in Malaysia and Indonesia in January. After finishing third at the 2020 PUBG Mobile Global Championship while still representing ZEUS Esports, it was the team’s second-best international performance.

Regarding the founders of Ih Bit Global’s arrest, IHC Esports has not yet made any remarks. The group’s other partners include sportswear maker Puma, cryptocurrency exchange X-META, and betting firm 1xBet.

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