In recent weeks it came to our attention that despite various forms of oversight, the Vibes competition was compromised both from within and externally.
This information is being presented for your consideration.
The internal and most significant issue was discovered by a Hive member who became aware of what was first thought to be a vote trading type of a situation. After investigating it further, it turned out to be a sophisticated kickback scheme that involved multiple Hive members.
Everyone familiar with Vibes knows that 
Before we move further, let us be clear that this matter is under ongoing investigation. The penalty for fraud is the addition to the Hive Watchers/Spaminator blacklist.
The way the kickback scheme worked is like this:
with a portion of their rewardsAt this time, it is unknown how the Vibes participants who were approached were selected. We spoke to multiple participants. Some were approached, some weren't. The scheme began to unravel when a couple of people who participated in it broke their silence.
To clarify, not all Vibes winners were a part of the scheme - some were approached and rejected partaking. A community poll system was implemented that affected the final results as well as 
As a result, at this time and at this point of the investigation:
has a permanent blacklisting for fraud (no appeal) for creating, organizing and carrying out this scheme
has a regular blacklisting for fraud (appeal possible, current duration not determined) for laundering the kickback fundsThe investigation is still ongoing due to the known and potential number of people involved both directly or indirectly.
Vibes competitors who willingly participated in this scheme are banned from being part of any Value Plan budget-funded events/Hive promotional events now and in the future in the role of team members.
This being said, we do thank the individuals who came forward, who will not be named here for their personal safety. We also thank a Hive member who chose to be anonymous who did the bulk of the existing investigation into this matter.
Due to the safety concerns for the people who came forward and those who provided information in follow-up, we will not be publishing screenshots of their interactions with
During our preceding investigation it became apparent that a business was created by 
These musicians were not Hive members and did not know about Hive prior to this. The musicians were attracted by a representation of Vibes and Hive as an opportunity gatekept by the academy to make money.
The way the business scheme works is like this:
At this time, the investigation has not yet revealed to what extent this second scheme was connected to the first scheme.
It should be clear that absolutely no Hive members of Cuban origins were involved in any part of this investigation, including in reporting. No Hive member currently residing in Cuba or originally from Cuba had any part in reporting this.
Please see:
As a result of this investigation so far:
has a permanent blacklisting for fraud (no appeal) for creating this schemeWe will get in touch with all the victims of this scheme and correct their understanding of the Hive blockchain and ecosystem.
The Vibes competition has been terminated by
The damage incurred is estimated from few hundred to few low thousand HBD that was funneled by the musicians participating in the fraud back to Verbal-d.
Vibes has been a pillar of the Hive music community, onboarding over 1,500 users, peaking at 500 weekly participants, hundreds of active users, and building a thriving creative hub. But over time, corruption and misuse by a few have tainted what was meant to be pure and community-driven.
Out of respect for the vision and the people who made it special, Vibes is shutting down, not in defeat, but in integrity. The music will live on elsewhere on Hive.
