SafeMoon Founders Arrested ⛓️🧑⛓️

GM. This is Degen Scoop. It’s Thursday, here’s…:

• SafeMoon Founders Arrested ⛓️🧑⛓️

• CFTC Paid $16M To Whistleblowers 💰

• On-Chain Treasuries Arrive on Base 🪙

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

SafeMoon Executives Get Arrested, Kyle Nagy Remains At Large

The DOJ has unsealed an indictment against SafeMoon executives Braden John Karony, Kyle Nagy, and Thomas Smith, charging them with conspiracy to commit securities fraud, wire fraud, and money laundering. The SEC filed civil charges against SafeMoon and its executives on the same day, accusing them of a "massive fraudulent scheme" that resulted in significant losses for investors.

SafeMoon, launched in March 2021, gained popularity by allocating half of its 10% transaction fee proceeds to token holders. The indictment alleges that SafeMoon executives misled investors about the accessibility of "locked" liquidity and their personal holdings and trading of SFM. While SafeMoon's market capitalization exceeded $8B, federal prosecutors claim that the executives fraudulently diverted and misappropriated millions of dollars in locked SFM liquidity for luxury vehicles, real estate, and personal investments.

A notable purchase mentioned in the indictment is an $860,000 custom Porsche 911 sports car for Smith. The DOJ asserts that the executives utilized complex transaction routing and pseudonymous centralized exchange accounts to conceal their activities. Karony was arrested in Utah, Smith in New Hampshire, and Nagy remains at large. If convicted, they face up to 25 years in prison.

The CFTC Has Paid Out $16M To Whistleblowers in 2023 So Far

The CFTC has paid a total of $16M to individuals providing information leading to successful enforcement actions this year, with a significant focus on whistleblowers in the crypto space. The CFTC Commissioner has stated that whistleblowers are eligible for up to 30% of the collected sanctions and play a crucial role in supporting investigations.

In 2023, the CFTC received the highest number of tips ever (1,530), with the majority related to crypto. Two whistleblowers received a combined $15M for their significant contributions to successful enforcement cases in September, although the specific cases remain undisclosed.

Since the launch of the CFTC's Whistleblower Program award in 2014, approximately $350M has been awarded to informants, contributing to over $3B in enforcement sanctions. Whistleblowers are essential for identifying fraud, interpreting key evidence, as well as saving resources and time.

Maple Finance Brings Treasuries On-chain To Base

Maple Finance is making strategic moves by expanding its on-chain services to the Base network, marking its third supported blockchain alongside Ethereum and Solana. The Cash Management pool will be brought to Base, offering a 4.8% yield from short-term U.S. treasuries.

In an environment of rising interest rates, the pool has proven popular as a safer source of yield than your typical pool2 structure. The exclusive borrower for this pool is Room 40 Capital, utilizing deposited $USDC to purchase T-Bills off-chain and tokenize them for users to invest in.

This move not only provides Maple Finance with direct access to Coinbase Institutional customers but also sets the stage for future offerings on Base. Co-founder Joe Flanagan anticipates launching at least one more pool on Base by the end of the year. As long as interest rates remain elevated, there will be a desire for real-world yield sources rather than token inflation.

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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.