Reports began circulating about a week ago that a Macau-based eSports operated was involved in a cryptocurrency scam that has taken 70 locals on a $2.5-million ride. The company, Grow uP eSports, was accused of facilitating meetings between the investors and a cryptocurrency mining equipment manufacturer, Genesis Hong Kong, Ltd., which ultimately has not abided by the investment agreements and has not reimbursed investors as promised. Now, Grow uP’s founder, Frederico Alexandre dos Santos Rosario, has spoken out, denying any involvement in the scam.

According to Inside Asian Gaming, Rosario penned a letter to the media outlet this past Tuesday in response to what he calls “baseless and calumnious allegations” related to the scam. He said that he has been the victim of a number of defamatory comments and accusations thrown at him by the Hong Kong eSports community and Genesis’ majority shareholder Dennis Lau, and intends on filing a defamation lawsuit against Lau.

Rosario’s mother, Rita Botelho Dos Santos, has already filed complaints against Genesis and its partner, Forger Tech, as well as against Lau and Hong Kit Lau, another majority shareholder in Genesis. Those complaints come after Genesis and Forger held seminars hosted by Grow uP in Macau last January that, as has come to light, were apparently nothing more than an opportunity to perpetrate fraud.

142 participation agreements were signed by 70 residents in Macau to invest in the purchase of crypto mining equipment. According to the agreement, “significant returns” would be paid out, but to date only around $815,000 of the more than $20 million has been returned. Out of a total of seven funding rounds held, only the first three have seen capital returned to the investors.