Chris Williams, CEO of OpSec, a purported AI Cloud Security platform, announced that he and “the entire core team” resigned. Williams cited a recent investigation from ZachXBT, who claimed that OpSec was fraudulent.

One user, Zopp0, simultaneously owned OpSec and several other projects and withheld critical information and even payment from Williams’ team.

ZachXBT’s OpSec Investigation

Chris Williams, CEO of AI Cloud Security Platform OpSec, announced that he and OpSec’s entire core team were resigning en masse. Williams cited a recent investigation by crypto sleuth ZachXBT and claimed that the business was “no longer viable.” Specifically, he claimed that OpSec’s anonymous founder deliberately withheld critical information.

“This decision follows recent findings, highlighted by ZachXBT, along with our own assessment of OpSec’s operations. These revelations, coupled with the un-doxxed founder’s prolonged absence and sole control over the company’s finances, have severely limited our ability to lead and execute our vision effectively,” Williams claimed.

So, what were ZachXBT’s allegations, and how did they impact the firm’s operations? On the surface level, OpSec appeared to be a legitimate business, even partnering with other cloud computing firms to create DePin solutions. However, Zach stated that one user, Zopp0, created at least four shaky crypto startups, hoping to attract naive investors.

ZachXBT’s investigation began in March when he posted evidence that OpSec’s purported hardware capacities were nonexistent. In November, however, he followed this up with leaked Telegram chats in which Zopp0 openly discussed his total lack of a plan for executing OpSec’s business model. These chats made it clear that the business had no real core.

In other words, Zopp0 managed to insulate Williams and the rest of OpSec’s developers from this lack of functionality. Positive social media buzz, partnerships, and other publicity actions drove up OpSec’s price. Behind the scenes, however, Williams said Zopp0 provided a “lack of clarity regarding OpSec’s direction,” and frequently withheld pay.

The actual fraud here is somewhat similar to several which ZachXBT previously investigated. A seemingly legitimate project courts public interest, but upon closer inspection it cannot execute the purported vision. Zach also claimed that Zopp0 was secretly running OpSec and several less prominent “businesses”, a common tactic in token scams.

After obtaining this leaked information, ZachXBT confronted Zopp0, who became increasingly agitated in private chats. Excerpts from these were again leaked to ZachXBT, building evidence of misconduct.

Zach then released most of this leaked information at once. Williams claimed that this corroborated his team’s own suspicions, leading to the mass resignation.

As of yet, none of Zopp0’s other alleged sham businesses have gone through public employee discontent. Nonetheless, ZachXBT also compiled a list of influencers who helped pump OpSec’s social media presence. He warned of a heightened risk of scammers due to crypto’s bull run and encouraged users to conduct due diligence.

Bitcoin price saw a short-term correction from the $93,450 zone. BTC is now consolidating gains near $87,000 and might attempt another increase in the near term.

• Bitcoin started a downside correction from the $93,450 zone.
• The price is trading above $87,000 and the 100 hourly Simple moving average.
• There is a connecting bearish trend line forming with resistance at $90,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it stays above the $87,000 zone.

Bitcoin Price Starts Downside Correction

Bitcoin price attempted more gains above the $93,000 level. BTC traded to a new all-time high at $93,435 and recently started a short-term downside correction.

There was a minor decline below the $90,000 level. The price even dipped below the $88,000 level. A low was formed at $86,621 and the price is now consolidating. It is slowly moving higher and trading near the 23.6% Fib retracement level of the downward move from the $93,435 swing high to the $86,621 low.

Bitcoin price is now trading above $87,000 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $90,000 level. There is also a connecting bearish trend line forming with resistance at $90,000 on the hourly chart of the BTC/USD pair.

The trend line is close to the 50% Fib retracement level of the downward move from the $93,435 swing high to the $86,621 low. The first key resistance is near the $90,850 level. A clear move above the $90,850 resistance might send the price higher.

The next key resistance could be $91,500. A close above the $91,500 resistance might initiate more gains. In the stated case, the price could rise and test the $93,450 resistance level. Any more gains might send the price toward the $95,000 resistance level.

More Downsides In BTC?

If Bitcoin fails to rise above the $90,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $87,150 level.

The first major support is near the $86,500 level. The next support is now near the $85,280 zone. Any more losses might send the price toward the $82,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 80 level.

Major Support Levels – $87,150, followed by $86,500.

Major Resistance Levels – $90,000, and $91,500.