if you lost money on ALPHA: filing a complaint
read through what's been found first: the alphafi research & the chain records it links to. if you feel the on-chain record warrants a complaint, you don't need a lawyer to file one & regulators take them straight from the people affected. this page is what to gather, what to point at & where to send it, for two separate complaints: one for holding ALPHA through the sep 2026 crash & one for paying the 50% vault penalty in 2024-25. it's practical information, not legal advice; for advice on your own situation, talk to a lawyer where you live.
1. gather your own records
paste your sui address & this reads your wallet's whole ALPHA history: what you bought & when, what you paid, what you sold, what you held at the shutdown post & any 50% vault penalties. it gives you lines to paste into the complaint & a csv of every transaction.
also worth having:
- your sui wallet address (or addresses).
- when & how you got your ALPHA: buy transactions (paste your address into suiscan & open the activity tab), or exchange statements.
- what you held on sep 25 2026, incl. anything in the ALPHA vault & any withdrawal you'd queued.
- whether you sold or still hold it & what it's worth now vs what you paid. a loss figure in your own currency.
- screenshots of the app or docs you relied on, if you have them.
2. what was said vs what the chain shows
the statements most relevant to the sep 2026 crash, each w its receipt. you can link this page in your complaint; every transaction opens on a public explorer.
| what was said | what the chain shows | receipts |
|---|---|---|
| the ALPHA vault lock is "fixed at 35 days and enforced on-chain" (alphafi.xyz/alpha & the docs) | the contract enforced 28 days. on sep 25 2026 at 22:16:48 alphafi's vault admin set it to 0, 53 minutes before the shutdown post | lock set to 0, the vault lock |
| "You can withdraw ALPHA at any time." (@AlphaFiSUI, sep 25 23:09:32 (archived)) | not for the 51 tickets already settled before 22:16:48: the contract refused their claims until an upgrade at 07:30:55 the next morning, by which point ALPHA was already ~$0.02 | the upgrade, the vault lock |
| "AlphaLend is built for the bad days", w "oracle sanity checks" & "conservative risk caps" (@0xrajendra, jun 27 2026 (screenshot)) | alphalend priced ALPHA off AVAX's price feed from nov 25 2025 (bar two days in december), at several times its market price | mapped to AVAX, the gate |
| "Flow limits cap the blast radius at $250K per market" (@0xrajendra, jul 14 2026 (screenshot)) | true when posted: the USDC market's outflow limit was 250,000 per 30 min. the lending admin raised it to 500,000 on jul 19 & to 5,000,000 an hour on sep 4. on sep 6 the fee wallet borrowed 3,551,828 USDC in one transaction, the admin switched the limit off 90 seconds later & the fee wallet borrowed 1,131,506 more 34 seconds after that. no disclosure of any of it that i can find | raised to 5M, 3.55M, limit off, 1.13M, the full timeline |
| nothing. i found no post, doc or sdk note that said ALPHA's lending price came from other coins' feeds | ALPHA's price was re-pointed 5 times (SUI, stSUI, gold, APT, AVAX); alphafi's sdk kept showing its coingecko price | the gate, the code |
| borrow positions against ALPHA "became substantially undercollateralised" (@AlphaFiSUI, sep 25 23:09:30 (archived)) | the four positions were opened by wallets alphafi's fee wallet funded or gassed & their control objects sat in that fee wallet from dec 2025 until sep 7 2026 | handoffs P1 P2 P3 P4, september |
| "recovery of the amounts owed is being pursued" (@AlphaFiSUI, sep 25 23:09:34 (archived)) | the debt sat in positions alphafi's own fee wallet controlled. no recovery action reported that i can find, as of oct 15 2026 | september |
| "No user funds are impacted" (@SuiNetwork, sep 25 23:15:51 (archived); sui's statement, not alphafi's) | the rescue covered the lending side. ALPHA holders took the crash | the 68 minutes |
around the announcement: a cluster wallet claimed 11,566 ALPHA at 22:35:54 & sold it before the 23:09 post (last sale) & another claimed 214,001 ALPHA at 23:21:04, 35 seconds after the vault could pay it (7pEzxkWr…). the minute by minute: the 68 minutes.
the sui foundation's part
sui says its security team identified alphafi's "misconfiguration" of its oracle & the bad debt. it also says the foundation chose to cover it (@SuiNetwork, sep 25 23:15:51 (archived)). the chain shows that rescue was underway well before the public heard, while the wallets that analysts call the foundation's kept backing alphafi:
- sep 7 & 8: alphafi's fee wallet moves all four bad-debt position caps into a brand-new wallet (0x5f81…) it had just funded (P1 P2) & the next day money withdrawn from coinbase flows into it to start repaying. the rescue was underway 18 days before the announcement.
- sep 8 to 20: the debt is repaid w money withdrawn from coinbase & kraken, $17,129,783 of it in one transaction on sep 20 (FK6jAgAP…). ALPHA holders weren't told.
- sep 11: 0x51f8…, an operations wallet funded by the wallet that analysts call the foundation's, still pays alphafi's lending admin its biweekly SUI payment (F4mzvDrF…; the payouts).
- oct 6: the foundation-labeled 30M SUI stake leaves alphafi's validator, 11 days after the announcement (4Y9Mrsz2…).
- since: no public statement i can find on what the "misconfiguration" was, who made it, how much was paid, or what its investigation found. the price changes it would have had to find are public transactions signed by alphalend's own lending admin (the gate).
the foundation-labeled wallets are labeled by analysts, not confirmed by the foundation. the full timeline: what the foundation knew & when.
3. where to file
file where you live. if more than one fits (police & the financial regulator), file w both: complaints get cross-checked & many reports from different places carry more weight than one.
| where you live | file with |
|---|---|
| united states | FBI IC3 internet & crypto crime reports SEC tips possible securities violations CFTC commodity & crypto market fraud your state attorney general consumer protection |
| united kingdom | Report Fraud (was Action Fraud) police fraud & cybercrime reports (england, wales, n. ireland); replaced action fraud in dec 2025 FCA the financial regulator |
| european union | ESMA's investor complaint page find your country's financial regulator from there; also report to your national police cybercrime unit |
| canada | Canadian Anti-Fraud Centre fraud reports, shared w police |
| australia | ReportCyber cybercrime reports to police |
| india | National Cyber Crime Reporting Portal financial & cyber fraud reports |
| united arab emirates | VARA dubai's virtual asset regulator Dubai Police eCrime dubai police's online crime reports |
| anywhere else | your national police most have a cybercrime or financial crime unit; interpol lists every member country's police |
4. what to write
only if, after reviewing the evidence, you feel it's warranted. plain facts, your own numbers & links. fill in the brackets, cut anything you don't think the record supports or that doesn't apply to you & keep it in your own words where you can.
who to name: alphafi & the company some of its people work under. people who worked on alphafi list their employer on their public profiles as "Chainmind Software LLC" (also "Chainmind LLC" or "ChainMind") & that company's CTO describes building a DeFi platform on sui (yield vaults, a lending protocol & liquid staking) for a client. i couldn't find it in any public company registry i could search (california, DIFC), so both templates name it only as it appears on those profiles. a regulator can look it up properly; we can't.
Subject: Losses on the ALPHA token (AlphaFi / AlphaLend, Sui blockchain), September 2026
I held ALPHA, the token of AlphaFi, a DeFi protocol on the Sui blockchain run by AlphaFi (CEO Raj Murakonda, @0xrajendra on X). AlphaFi announced it was shutting down on 2026-09-25 at 23:09 UTC, and ALPHA fell to about $0.02.
People who worked on AlphaFi list their employer on their public professional profiles as "Chainmind Software LLC" (also written "Chainmind LLC" or "ChainMind"), and that company's CTO describes building a DeFi platform on Sui (yield vaults, a lending protocol and liquid staking) for a client. I could not find it in a public company registry, so I am naming it only as it appears on those profiles.
My wallet address: [your Sui address]
What I bought and when: [dates, amounts, transaction links]
What I held on 2026-09-25: [amount of ALPHA, including any in the ALPHA vault]
Value lost: [what I paid vs what my ALPHA is worth now, in USD or your currency]
Having reviewed the public blockchain record, I believe I was misled by public statements that it contradicts, including:
1. The app and docs said the ALPHA vault lock was "fixed at 35 days and enforced on-chain". AlphaFi's own admin wallet set the lock to zero 53 minutes before the shutdown was announced (tx sYHn75UhxG2erxYBqufnDyRaivJKf65LijkTnKVdUE6).
2. The CEO posted that AlphaLend had "oracle sanity checks" (2026-06-27). At the time, the platform priced ALPHA using a different coin's price feed (AVAX), at several times its market price. I am not aware of any disclosure of this.
3. The CEO posted that "Flow limits cap the blast radius at $250K per market" (2026-07-14). At that time the USDC market's outflow limit was 250,000 USDC per 30 minutes. AlphaFi's lending admin raised it to 500,000 on 2026-07-19 and to 5,000,000 per hour on 2026-09-04 (tx HXSbkZfm228i7wgrThyWgU8CeWVzbuPpsYW247LAxeXM). On 2026-09-06 AlphaFi's own fee wallet borrowed 3,551,828 USDC in one transaction (tx AUHp6aWyN5dCpumZttoty3CkgEZPLFT44czTtmbq5UTJ). 90 seconds later the admin set the limit to zero, which switches the check off (tx 2sFGN3iHSn3jpG8RN1Ux8m9tYznnUS5vHgJmvR8eAmTg), and 34 seconds after that the fee wallet borrowed another 1,131,506 USDC. I am not aware of any disclosure of these changes. (Full timeline: https://www.k4d.io/alphafi/the-code#h-limits)
4. The shutdown post described the bad-debt loans as positions that "became substantially undercollateralised". The blockchain shows those loan positions were controlled by AlphaFi's own fee wallet from December 2025 until September 2026.
5. A group of connected wallets (see https://www.k4d.io/alphafi/early-movers) withdrew and sold ALPHA in the minutes before and after the announcement, while other holders' withdrawals stayed locked.
The Sui Foundation's role (keep this part if you want the foundation looked at too):
6. The Sui Foundation says its security team identified the "misconfiguration" and that it covered the bad debt. The blockchain shows the rescue was already underway by 2026-09-08, about 18 days before the public announcement: on September 7 AlphaFi's fee wallet moved the bad-debt positions into a new wallet it had just funded, from September 8 money withdrawn from Coinbase flowed into that wallet to repay them, and about $27.7M (funded from Coinbase and Kraken withdrawals) of debt was repaid between September 8 and 20 (one transaction: FK6jAgAPEK7eEKbGJDZo9YweNBFyMvw47wxnBjbQWewf). ALPHA holders were not told during those 18 days.
7. Wallets that analysts attribute to the Sui Foundation kept paying AlphaFi's reward wallet until 2026-09-11, and kept 30 million SUI staked with AlphaFi's validator until 2026-10-06.
8. Since 2026-09-25 I have not found any public statement from the Foundation on what the misconfiguration was, who made it, how much it paid, or what its investigation found.
A full, sourced write-up with every transaction: https://www.k4d.io/alphafi
Statements vs evidence, in one table: https://www.k4d.io/alphafi/file-a-complaint
[Your name and contact details]a separate complaint: the 50% vault penalty (2024-25)
if you left alphafi's ALPHA vault early in 2024 or 2025, the vault kept half of what you took out. if, after reviewing the evidence, you feel that warrants a complaint, it's its own one, whether or not you still held ALPHA in sep 2026. the lookup above lists every penalty your wallet paid.
- the docs said the vault was locked for 100 days & an early exit cost 50%, for everyone (tokenomics page, jul 2024).
- team-linked wallets paid it too, but on 97 of their exits the fee wallet sent the penalty straight back within minutes: 4,379,615 ALPHA. the first refund was on aug 8 2024, while launch depositors were still in their 100-day lock.
- outside the team, 774 wallets paid it on 1,560 exits, 284,651 ALPHA. none of their penalties of 500 ALPHA or more got the quick refund the team's did.
- while depositors were locked (the first 100 days ran to early oct 2024), alphafi's fee wallet sold about 327,700 ALPHA for ~364,500 SUI & ~299,600 USDC: 66,300 in eight swaps on jul 31 2024, day 35 (one another) & the rest through cetus range orders. four weeks earlier alphafi had listed "Buy backs with protocol fees" among ALPHA's selling points (@AlphaFiSUI, jul 2 2024 (archived)).
the full numbers & every transaction: the vault lock. file it in the same places (above).
only if, after reviewing the evidence, you feel it's warranted. plain facts, your own numbers & links. fill in the brackets, cut anything you don't think the record supports or that doesn't apply to you & keep it in your own words where you can.
Subject: 50% early-exit penalty on AlphaFi's ALPHA vault (Sui blockchain), 2024-2025
I deposited ALPHA, the token of AlphaFi (a DeFi protocol on the Sui blockchain, CEO Raj Murakonda, @0xrajendra on X), into AlphaFi's ALPHA vault. When I withdrew early, the vault paid me half and sent the other half to AlphaFi's fee wallet (0xee5360c5fa13555cbf355cb5015b865d742040e42ff90c324e11f0c63e504545) as a 50% penalty.
People who worked on AlphaFi list their employer on their public professional profiles as "Chainmind Software LLC" (also written "Chainmind LLC" or "ChainMind"), and that company's CTO describes building a DeFi platform on Sui (yield vaults, a lending protocol and liquid staking) for a client. I could not find it in a public company registry, so I am naming it only as it appears on those profiles.
My wallet address: [your Sui address]
My early withdrawals and the penalties taken: [paste the lines from the lookup on k4d.io/alphafi/file-a-complaint]
AlphaFi's documentation said the vault lock applied to everyone: "ALPHA tokens in this vault are locked for 100 days. You can withdraw locked tokens anytime with a 50% penalty." It also said team tokens were under a 300-day cliff and the team could not earn yield on them.
Having reviewed the public blockchain record, I believe the penalty was not applied equally:
1. Wallets linked to the AlphaFi team paid the penalty on 192 exits of 500 ALPHA or more. On 97 of them, AlphaFi's fee wallet sent the penalty straight back to the same wallet within minutes: 4,379,615 ALPHA returned in total. Others were forwarded to a different team wallet.
2. Outside the team, 774 wallets paid the penalty on 1,560 exits, 284,651 ALPHA in total. None of the outside wallets' penalties of 500 ALPHA or more were returned within minutes the way the team's were.
3. The first return to a team wallet was on 2024-08-08, while launch depositors were still inside their 100-day lock.
4. While depositors were locked, AlphaFi's own fee wallet sold about 327,700 ALPHA in its first ~100 days (66,300 of it in eight swaps on 2024-07-31, e.g. tx 4fTa8sMYEvoawiruAinYcPTk9rVrEJ6pQwdDsKuQkm9M), for about 364,500 SUI and 299,600 USDC. On 2024-07-02 AlphaFi had advertised "Buy backs with protocol fees" for ALPHA (https://x.com/AlphaFiSUI/status/1808092071573778923).
Full write-up with every transaction: https://www.k4d.io/alphafi/vault-lock#h-penalty
[Your name and contact details]5. what to expect
- most agencies won't reply to each report. reports get pooled & they matter when someone builds a case. keep your reference number.
- getting money back usually takes a civil claim, often as a group of holders w a lawyer. a report doesn't do that on its own.
- keep everything: your records, this page's links & any replies you get.