Capuci was charged with conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to commit international money laundering. If convicted on all counts, he could be sentenced to up to 45 years in prison.
Mining Capital Coin CEO indicted for $62 million investment fraud scheme
The Department of Justice unsealed an indictment on May 5, showing that Mining Capital Coin's CEO and founder Luiz Capuci Jr. was charged with orchestrating a $62 million investment fraud. Capuci allegedly misled investors about MCC's program, which he said would use investors' money to mine new cryptocurrency and would generate guaranteed returns. Instead, Capuci put the funds into his own crypto wallets, and used them to fund his own lifestyle of Lamborghinis, real estate, and a yacht. Capuci also allegedly ran a pyramid scheme of promoters, to whom he promised luxury gifts including iPads and luxury cars.
- "CEO of Mining Capital Coin Indicted in $62 Million Cryptocurrency Fraud Scheme", U.S. Department of Justice
Pragma defi protocol developers rug pull for $1.5 million
The Pragma defi project on the Fantom blockchain announced that their treasury and project wallets had been drained for around $1.5 million in $FTM.
The rug pull appeared to have been perpetrated by one team member, although several other team members had to sign off on the transaction in order for it to go through.
The team had had their real-life identities verified by Obsidian, and remaining team members said they were working with Obsidian to try to investigate those behind the theft. Third-party KYC verification like the service Obsidian provides is often used by crypto projects to increase trust, though Pragma is hardly the first project with this kind of verification that stole funds anyway.
Juno accidentally transfers $36 million in seized funds to inaccessible wallet address
A protracted discussion and two different votes ended with the Juno project deciding to confiscate all but 50,000 of the 3 million $JUNO accumulated by one individual. When the discussions began, the 2.95 million $JUNO to be confiscated were worth a combined $121 million. However, the $JUNO price has dropped from the then all-time-high of around $40 to under $13, putting the value of the tokens to be confiscated closer to $38 million.
Juno intended to transfer the seized tokens from the individual whale's wallet to a community-controlled wallet. However, the person making the transfer accidentally copied and pasted the wrong value, resulting in the funds being sent to a wallet address that no one can access — effectively burning the tokens.
Daniel Hwang, who helps run one of the Juno validators, said to CoinDesk, "We fucked up big time". He also offered an unusual opinion: "Validators should have due diligenced for ourselves to actually check the code we're executing and running".
Shortly after the botched transaction, the Juno community began voting on a proposal to hard fork a second time to fix their mistake.
Attacker compromises MM.Finance to redirect $2 million in crypto assets to their own wallet
MM.Finance, a group of crypto projects based on the Cronos blockchain, suffered an attack that allowed a hacker to redirect more than $2 million worth of crypto assets that were being exchanged through the project's website to their own wallet. Although MM.Finance described the attack as "DNS hijacking", it seems unlikely this is an accurate description of the attack, which seems more likely to involve phished credentials to their domain service providers.
"Please do not perform any transactions or your funds will be sent to the exploiter wallet," MM.Finance tweeted shortly before taking the website offline. Three days earlier, MM.Finance had published a blog post to address "FUD" in their ecosystem stemming from a popular Reddit post that described MMF as an "inverse pyramid of derivatives" that the author believed would "topple", and outlined the project's "rosy future".
The project promised to try to compensate users, with its developers foregoing 45 days of trading fees to reimburse users. They also appealed to the OKC crypto exchange to intervene to help recover funds from someone they believed to be the attacker, and threatened the attacker with the FBI. "With all these information, we have more than what we need to bring this information to the FBI," they wrote on Twitter. "So here's the deal, return 90% of the funds you stole and we will let this go, no questions asked. You have 48 hours to return these funds."
- Tweet by MM.Finance
- "Mm Finance — The road ahead", MM.Finance blog
- "Personal Take on Events and Existing Tokenomics", post from r/MMFinance
- "DNS Hi-Jacking Post Mortem & Compensation", MM.Finance blog
ape holders can use multiple slurp juices on a single ape
a lotta yall still dont get it
ape holders can use multiple slurp juices on a single ape
so if you have 1 astro ape and 3 slurp juices you can create 3 new apes
Tonight's slurp juice mint event is essentially a minting event for both Lab Monkes and Special Forces
Video game company Square Enix agrees to sell much of their Western IP so they can go into the blockchain market
Video game company Square Enix, the creators of titles including Deus Ex and Tomb Raider, agreed to sell off the intellectual property rights to those games, as well as other games and their respective game studios. The move, they said, was so they could invest more heavily in "blockchain, AI, and the cloud". This didn't come as an enormous surprise, as in January, Square Enix CEO announced these intentions in a letter that acknowledged that that (apparent subset) of players who "play to have fun" wouldn't be thrilled with their blockchain plans.
The sale agreement announcement came at a tough time for Square Enix, as it was published the same day as a report from the Wall Street Journal that "NFT Sales are Flatlining".
NFT sales drop 92% from peak, says Wall Street Journal
The Wall Street Journal reported that "the NFT market is collapsing", citing data from NonFungible that showed daily average sales of NFTs had dropped 92% from their September peak. They also reported that active wallets had dropped 88% from their November peak, suggesting fewer people were regularly trading NFTs. This may reflect growing disillusionment with a sector that's increasingly earned its reputation as full of scams and opportunities to lose money.
However, the article must be taken with a grain of salt. It's very difficult to determine in the moment what's simply a temporary lull rather than a death spiral, and notoriously inconsistent NFT and crypto data sources can tell wildly different stories.
- "NFT Sales Are Flatlining", Wall Street Journal
The Vatican plans a metaverse NFT gallery
A press release from metaverse developer Sensorium announced a "VR and NFT gallery" that would host art and content for the Vatican. The project will allow VR, PC, and mobile interactions, and enable people to "build unique NPCs and communicate with them". That part is a promising prospect for anyone interested in watching the Roman Catholic Church try to deal with the challenges of moderating metaverse shenanigans, and made altogether more amusing by the fact that Sensorium's current collection of example metaverse avatars are all hypersexualized, apparently covered in oil, and wear skimpy or sheer outfits apparently made from mesh, latex, and various harnesses.
For now it sounds like the project doesn't involve selling NFTs, which raises the question of why NFTs are required at all when the goal seems to just be to display artwork online — something the Vatican already does. Personally, until I can own the Popemobile in the metaverse, I'm not interested.
Juno whale threatens to sue network validators if community confiscates his tokens
The Juno community has officially voted to confiscate over 2.95 million $JUNO owned by one whale who they believe gamed the airdrop to obtain more than his fair share. This follows a long community discussion about his actions, and formalized a previous community poll on what to do. When the discussions began, the 2.95 million $JUNO to potentially be confiscated were worth a combined $121 million. However, the $JUNO price has dropped from the then all-time-high of around $40 to $11.30, putting the value of the tokens to be confiscated closer to $33 million.
The whale has repeatedly appealed to the community not to revoke his tokens, even trying to claim that the Juno developers had been secretly selling off $JUNO and damaging the community. Unfortunately for him, he didn't succeed in swaying the community, who voted on April 29 to confiscate his tokens.
The whale has threatened to take "legal action against each validator" if the community burns or locks the tokens that previously belonged to him, and which he claims to have been managing on behalf of clients in an investment scheme.
Wikimedia Foundation stops accepting cryptocurrency donations
The Wikimedia Foundation, the non-profit organization that owns and operates Wikipedia and related projects, announced that they would no longer accept donations in cryptocurrency. The announcement followed a formal request from the community that the WMF no longer accept such donations, a request that came from three months of discussion among members of the community.
The Wikimedia Foundation has accepted cryptocurrency donations since 2014, accepting donations in cryptocurrencies including Bitcoin, Bitcoin Cash, Ether, Ripple (XRP), Litecoin, Dogecoin, and the DAI and USDC stablecoins. However, it has made up a small portion of the non-profit's donation revenue — they received only $130,000 worth of crypto donations in the last fiscal year, which made up 0.08% of their revenue.
There has been strong pressure from crypto advocates on the WMF to accept crypto donations — both in 2014 when it was initially implemented, but also via brigading of the recent community discussion.
- Announcement from the Wikimedia Foundation
- Community discussion culminating in the request