Irys.xyz scam allegations detail over $5M drained from users through tasks and NFTs, raising concerns about transparency & fairness.
Author: Akshat Thakur
November 26, 2025 — The Irys.xyz Scam Allegations surfaced after a detailed exposé accused the Layer 1 project of extracting over $5 million from users through task farming, NFT schemes, and uneven tokenomics, leading to widespread demands for accountability. The claims outline two years of trust-building followed by minimal airdrop rewards and ignored testnet participants.
The Irys.xyz scam allegations gained traction after a viral post compiled two years of questionable practices, ranging from costly Galxe quests to unfulfilled NFT promises. Users claim Irys.xyz built momentum through heavy participation farming while giving extremely limited rewards at TGE.
The exposé states that despite hundreds of thousands completing tasks, only a small share of the community received meaningful allocations. The controversy has placed heavy scrutiny on the project and its founder, Josh Benaron.
According to detailed breakdowns, Irys.xyz ran three daily Galxe tasks costing 9 $G per user for 61 days pulling an estimated $1.976 million from roughly 300,000 users. An Arcade NFT mint allegedly extracted another $69,000 before being abandoned.
A second campaign featuring four daily tasks and multiple one-time quests reportedly drained an additional $3.24 million over 100 days. Users also point to the Bitomo NFT campaign, which promised 500 winners but published no public winner list, raising further flags.
The token structure is central to the Irys.xyz scam allegations. Only 8% was set aside for airdrops including future campaigns with TGE rewards estimated at a limited 4–5%. Binance Alpha users reportedly received 1,200 $IRYS each without effort, while most Galxe grinders and nearly all testnet participants received nothing.
Allocation caps at the top 10,000 users further deepened anger, especially after claims that Irys borrowed branding from Story Protocol, where Benaron was allegedly removed.
The Irys.xyz scam allegations highlight growing concerns about accountability in Layer 1 ecosystems where hype-driven tasks mask opaque reward structures. The incident signals deeper industry problems such as paid engagement farming, hidden allocation rules, and founder-driven narrative control.
Analysts argue that the Irys.xyz situation may push users to demand transparent airdrop criteria, published winner lists, and proof of fairness before contributing to future L1 campaigns.
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