The recently launched privacy-focused Ethereum Layer 2 project Shade Network is facing intense scrutiny due to its founder being accused of involvement with a project previously alleged to have embezzled $1.8 million. Critics point out several suspicious aspects of the project, including phishing warnings issued by wallet providers, lack of open-source code, team information, or audit reports, and recent withdrawals of support by early backers. The project has not yet officially launched and is currently only in the candidate list stage with social media promotional materials.