Reddit Mods Engage in Insider Trading 🙊

GM. This is Degen Scoop. It’s FRIDAY, here’s the scoop:

• Reddit Mods Engage in Insider Trading 🙊

• Aptos Goes Down For 5 Hours 📴

• Genesis, Gemini, and DCG Sued For $1B 🤯

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Reddit Mods Found Insider Trading On Moon News

Prior to the news surrounding Reddit sunsetting the use of Moons, insiders sold their bags before main street heard the news. According to on-chain analysts, there is concern over potential insider trading as significant sell-offs occurred just before the official announcement. The move led to an 85% drop in the value of Moons. While the moderators claimed they were unaware of Reddit's decision, the chain doesn’t lie.

Notable transactions involve moderators like Mcgillby, who sold over 100,000 Moons for more than $23,000 in ETH, and "rider_of_the_storm," who moved 345,422 Moons (worth over $69,000) to an exchange address just 17 minutes before the official announcement. The rapid succession of these transactions contradicts any claims of no foul play. The chain clearly shows that some users had access to earlier information than others and took advantage letting others hold the bag for them.

The Aptos Blockchain Experienced A Five Hour Outage

Yesterday, Aptos experienced an outage lasting more than five hours. The outage occurred during a community drawing application event to celebrate the one-year anniversary of the chain having launched. During the outage, all on-chain transactions were halted showcasing a significant disruption in the network due to the heavy traffic on-chain.

The outage coincided with a spike in Aptos's transaction fee, rising from 0.2 APT (approximately $1) to 1.72 APT (valued at $8.58) during the shutdown. Despite the temporary setback, the blockchain was running again after the five hours outage. Additionally, the APT token's value, Coingecko reports, quickly recovered to the $5 level after a brief dip.

NYAG Sues Genesis, Gemini, and DCG For $1B For Defrauding Investors

In a significant development, the New York Attorney General's office has launched a lawsuit against Genesis Global Capital, Gemini Trust, and Digital Currency Group (DCG). Alongside this lawsuit, there are allegations against former Genesis CEO Soichiro Michael Moro and DCG's founder and CEO, Barry E. Silbert. The lawsuit claims that parties mentione had engaged in fraudulent activities, deceiving approximately 232,000 customers and causing losses exceeding $1 billion.

The legal action revolves around two identified fraudulent schemes labeled the "Gemini Scheme" and the "DCG Scheme." The Gemini Scheme alleges that Gemini misrepresented the creditworthiness of its Earn program which offered users yield on idle holdings. The DCG Scheme involves concealing a structural hole of over $1 billion at Genesis Capital after the collapse of 3AC. The lawsuit comes amid a public dispute between the Winklevoss twins and Barry Silbert over financial matters, adding a layer of complexity to the ongoing legal proceedings. Unlike past crypto cycles, illegal behaviors are being punished this time around which is an improvement for the industry and its image..

Notable NFT Sales in the Last 24 Hours:

Notable Threads You May Have Missed:

Meme of the Day

Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.