STATEMENT FROM PHONKHELL ON THE UNFOUND ACCUSATIONS BY ANDROMEDA

Unfounded accusations by Andromeda regarding our label and our way of working with artists have prompted us to release this open statement.

Apparently, paying artists thousands of dollars in advance, signing standard industry contracts, and investing in their careers is now the new definition of a "scam". Who knew?

Let’s set the record straight:

  • Phonkhell invests real money into their artists.
  • Phonkhell signs standard industry agreements and sending them SEPERATLY out (one for licensing, one for publishing).
  • Andromeda in particular received $700 upfront, and then another $3,700 over a course of 6 months (total $4,400) signed happily, and later decided that the contract he signed (and cashed in on) was somehow fake.

The timing of Andromeda's unfound accusations is not a mystery: in end of January 2025 he signed the contracts, shortly after he had a viral track with "Montagem Coma" released in June 2025, the story suddenly changed. From “thank you bro, love working with you ❤” to “scam label", "never signed the contract", didn't know about.”

Here’s the reality — in his own words:

  • “Yeah I got it bro 👍🏼 … Thank you 😊 ❤” (after confirming payments).
  • “Love you bro 🙏🙏🙏 … keep working 💪” (directly after signing).
  • “Got it bro ❤ love work with you 👍🏼” (after receiving more payments).
  • “Yeah I confirm” (confirming $1,600 received).

(Screenshots attached for clarity.)

But when the viral hype in June/July 2025 came, he jumped on some other label and publisher and the tone changed:

  • Suddenly "I didn't know about it."
  • Suddenly "I wanna stay with you and them" (Phonkhell and the NEW publisher).
  • Suddenly "I even don't know what's publishing mean" but he got offered by other publisher "and I signed".

In October 2025, the situation escalates and Andromeda decided to start a slander talk in public against his label and publisher Phonkhell:

  • Instagram Story Post spreading false information and slander talk.
  • Suddenly "Can't understand how I signed it in January" & "It can't be true".
  • Although offering to talk about the situation and amicable offers from Phonkhell, Andromeda wanted "war" ("Do you want war? We'll give it to you, I'm not alone"), leaked the private phone number of the CEO into groups (we blackened the sensitive parts, Andromeda leaked it full in public), and started Telegram campaigns in russian language.

And then, after all the noise and defamation by Andromeda:

  • “I’m sorry … ready to stop the war now... tell me what should I do...”
  • “...I'm not going to post anything else.”

But, he still reposted the reactions of other (friends artists):

This clearly shows that his actions contradict his words — he is openly lying and attempting to manipulate. Consequently his actions are also to sign with one publisher and later changes his mind and signs with another one. At the same time he defames the first publisher (Phonkhell) in public.

Unless we have developed the supernatural ability to forge contracts, invent WhatsApp messages, and type thank-you emojis on behalf of our artists, these claims collapse under their own weight.

Here’s the truth:

We are not in the business of scamming. We are in the business of investing in talent — even when it costs us more in advances and patience than we may ever get back. We are taking financial risks. If supporting an artist financially and structurally is considered a scam, then perhaps we are guilty of the most generous scam in history.

The music industry is one of the most complex and demanding sectors to navigate. The distinctions between licensing rights and publishing rights, as well as between license royalties and publishing royalties, are subtle and often difficult to fully grasp. For this reason, two separate contracts are provided, clearly defining which agreement applies to which set of rights. There are no hidden clauses within the licensing contract; all matters related to publishing are transparently governed by the separate publishing agreement.

Furthermore, it is NOT the case — as many assume — that such contracts enable us to collect all royalties from other labels. This is simply not true, nor would it even be technically possible. A common misunderstanding among artists is the belief that a publishing agreement is "TAKEN AWAY" something from them. In reality, it BRINGS an additional source of income. By administering and collecting copyright on the publishing side, artists receive earnings they previously had no access to.

A publishing agreement does not prevent artists from working with other labels. There is no lock-in or exclusive obligation to release music with us. The agreement solely concerns the administration of the artist’s publishing rights, which is entirely separate from releasing music through labels.

And yes — despite all this, Andromeda is still under contract with us. We continue to believe in our artists and the power of their music. But we also need to clear our name from the mud that was thrown our way.

In the end, it doesn’t even feel like a question of right or wrong, or of legal contracts. On paper, everything is clear. What it really looks like is a matter of personal ambitions — artists deciding they don’t want to work with Phonkhell anymore and then searching for excuses to justify it. Instead of parting ways honestly in a professional way, they throw mud and cry “scam” to cover their actions and previous decisions.

And that’s the sad truth: this isn’t about justice, it’s about ego. Not about contracts and information, but about artists taking shortcuts, and cheap ways to get out what they committed before and received a well portion of financial support from Phonkhell.

We’ll keep doing what we always do — investing, supporting, and building real careers. The rest is just noise.