- Karel Kubat resigns from Composable Finance and calls out the CEO’s wrongdoing.
- The CEO, Omar Zaki, is accused of going against the US SEC cease-and-desist order.
- The CEO denies all the allegations made against him by his former CTO.
Resigning from a job is nothing new to the business world and the crypto industry. However, upon the public resignation of Karel Kubat, the now-former Chief Technology Officer (CTO) of the DeFi-based infrastructure company—Composable Finance—revealed some preliminary information about the company and its CEO.
On February 20, Karel took to Twitter to announce that he would no longer be working with Composable Finance, stating why he had departed.
According to Karel, the company hid its financial statement from him and the community, and he needed to learn the present overview of the company’s financial health. He called out the CEO, Omar Zaki, by accusing him of violating an SEC cease-and-desist order in which he raised funds for Series A.
“To my beliefs, Omar Zaki was raising the Series A and breaking his SEC-mandated cease-and-desist,” Karel said.
The crypto community has turned heads toward Omar Zaki’s direction, looking for answers to the allegations charged against him by his ex-CTO.
However, Composable Finance has not been quiet about the accusations. Its CEO conducted an AMA (Ask Me Anything) on Twitter Space, where he cleared the air by refuting all the allegations made against him by Karel Kubat.
According to Karel’s tweet, the public on-chain data revealed a deficiency of multi-sig usage, as he suspected that Omar was trading with the company funds.
On the other hand, Omar Zaki had been adamant in his response, claiming that all Karel Kubat said against him was false. On his Twitter Space, he explained that the company had conducted all activities legally and with supervision as regards the US SEC cease-and-desist order.
When questioned about the lack of the company’s financial statements, Omar responded that the company could not publicly reveal such data because Composable Finance was a private firm.
He further stated that the company was in due line with the US Securities and Exchange Commission (SEC), and nothing could cause him or the public concern.
Karel Kubat had not only accused Omar Zaki of violating the SEC orders but also alleged that the CEO was complicit in the “Bribe” rug pull, claiming that his role in the crime was more significant than Omar admitted when the famous on-chain sleuth, ZachXBT, earlier accused him.
The public resignation put Omar Zaki back in the spotlight. However, he vehemently denied the accusations by saying the Series A fundraiser was done offshore and within the laws of the countries where it occurred.
Karel Kubat ended his tweet by upholding his virtue above the illicit activities of Composable Finance and its CEO, saying all he witnessed during his employment in the company were enough reasons for him to resign.
“Enforcing the law is left up to the authorities. We’re a decentralized community, however, and simple unethical management is enough for me to leave,”
Conclusion
The CEO of Composable Finance is back on the hot seat as his ex-CTO accuses him of impure actions and clandestine crimes done in violation of the US SEC and against the trust of the crypto community.
