Roger Stone endorses $TRUMP memecoin with misleading posts

Roger StoneRoger Stone (attribution)
Amid tweets alleging corruption among jurors in his 2019 criminal case, far-right activist and Trumpworld figure Roger Stone has posted several tweets endorsing "MAGA Memecoin", one of the many memecoins with the $TRUMP ticker. In several posts, he's suggested the token enjoys support from Trump himself, mentioning that the token is "the largest holding in Donald Trump's crypto wallet". "Donald Trump has at least $2M in @MAGAMemecoin in his crypto wallet - get yours- this cryptocurrency is going UP!", he wrote in another.

What he failed to mention is that the tokens in Trump's wallet were airdropped to him, likely without Trump even realizing it. Several of Trump's crypto wallets are publicly known, and people send coins and NFTs to them all the time. Trump has no more endorsed Stone's "MAGA Memecoin" than he has the "HarryPotterTrumpHomerSimpson777Inu" tokens that also sit in his crypto wallet.

Elsewhere, Stone disclosed, "My promotion of MAGAMemecoin is, of course, sponsored." I haven't been able to find where he has disclosed the amount he was paid for these promotions, as he is required to do.

$2 million emptied from Grand Base real world asset platform

Grand Base, a real world assets platform built on the Base layer-2 blockchain, has seen $2 million exit the platform in a hack or rug pull.

The team behind the project claimed that the deployer wallet had been compromised, allowing an attacker to drain the project's liquidity pool. Altogether, 615 ETH (~$2 million) was taken from the project.

Grand Base is a platform where users can trade "gAssets", which are crypto tokens that represent stocks in tech companies including Amazon, Apple, Google, Meta, and Microsoft.

tea.xyz causes open source software spam problems, again

The tea.xyz protocol first earned an entry on Web3 is Going Just Great in late February, when their plan to reward open source software contributors resulted in crypto enthusiasts with no intention of participating in OSS opening endless pull requests to claim ownership of prominent OSS projects. This spam was disruptive to said projects, whose (usually volunteer) maintainers had to figure out what was going on and then try to stop the spammy PRs.

Max Howell, the creator of tea.xyz (and creator of homebrew, though he's no longer involved), seemed apologetic, and promised to make changes to the protocol to stop this spammy behavior.

Now, deprived of that avenue, people are just creating massive waves of empty software packages, with nothing other than a "teafile" with their crypto wallet address for rewards, and submitting them to package managers like NPM and RubyGems.

This spam prompted a blog post from RubyGems, who wrote that they had to devote time to strengthening limits on package publishing and "ensuring [accounts] didn't disrupt the community further."

Security researchers at Phylum also wrote up the protocol's impact on the JavaScript world, which has seen as many as 7x as many packages published on NPM as previous daily averages. "Automated sustained spamming of this volume for months on end is rare and does nothing but cause heavy strain on the ecosystem itself, degrading the performance of the ecosystem for genuine users and straining open source security researchers," they wrote.

$26 million liquidated in surprise Pac Finance smart contract change

Pac Finance, a fork of the Aave lending protocol deployed on the Blast blockchain, surprised some of its users as an unannounced and unexpected code change lowered the liquidation threshold. Pac Finance said that they had asked an engineer to make changes to the smart contract, and that that person had unexpectedly decreased the threshold at which positions could be forcibly liquidated. This change resulted in $26 million being liquidated across the project.

Pac Finance has said they are "actively developing a plan with [impacted users] to mitigate the issue."

Australian NGS Crypto mining fund collapses

NGS Crypto, which sold "crypto mining packages" to interested investors, has been put into receivership. The Australian firm encouraged customers to set up a self-managed super fund — a type of retirement fund — to achieve returns they said were powered by crypto mining. The firms advertised returns of up to 16% annually, and promised that investors would receive 100% of their initial investment back at the term's completion — even "in the unlikely event that crypto mining becomes unprofitable".

NGS and its associated business is believed to have pulled in around AU$62 million (US$42 million) from around 450 Australians.

Australian DCA Fund collapses with up to $65 million owed to creditors

Liquidators have been appointed for three cryptocurrency companies owned by Ash Balanian. DCA Capital, Digital Commodity Assets, and the Digital Commodity Assets Fund have all entered liquidation after investors raised red flags about the fund's management and licensure.

So far, losses are estimated to affect around 100 investors, who have up to AU$100 million (US$65 million) in claims.

Balanian had boasted of his career experience as a former NASA mission planner, and targeted his fund to wealthy investors with a minimum initial deposit of AU$50,000 (~US$33,000).

Crema Finance and Nirvana Finance hacker sentenced to three years imprisonment

Shakeeb Ahmed, the hacker who stole a combined $12 million from Crema Finance and Nirvana Finance in July 2022, has been sentenced to three years in prison. Ahmed had previously worked for Amazon, where he led a bug bounty program focused on paying whitehat hackers to discover flaws in Amazon's software.

US Attorney Damian Williams described this as the first ever conviction for a smart contract hack.

Ahmed forfeited around $12.3 million in stolen funds, and will pay more than $5 million in restitution.

MarginFi suffers huge outflows amid CEO ragequit

The MarginFi decentralized lending project on Solana has been at the epicenter of some major drama recently, amid concerns around oracle problems, withdrawal failures, and accusations that the project has not been paying out its promised rewards. Much of this came from a Solana staking pool, SolBlaze; MarginFi responded by describing their allegations as a "hit piece" and "misinformation".

On April 10, CEO Edgar Pavlovsky tweeted that he had resigned from MarginFi, publicly calling that he "d[idn't] agree with the way things have been done internally or externally". Pavlovsky had been criticized for his response to the controversy around MarginFi, in which he had been argumentative and insulting, tweeting things like "take your money out, go fuck yourself" to those who accused him and MarginFi of malfeasance.

Amid the chaos, more than $210 million in TVL has exited the protocol.

SEC sends Wells notice to Uniswap

The US Securities and Exchange Commission issued a warning to the Uniswap decentralized exchange in the form of a Wells notice. Wells notices are used to inform the recipient of an impending lawsuit, and give them a last-ditch opportunity to convince the SEC that the suit is unwarranted.

The notice was received with an adversarial posture by Uniswap, who announced its receipt with a blog post titled "Fighting for DeFi". "Taking into account the SEC's ongoing lawsuits against Coinbase and others as well as their complete unwillingness to provide clarity or a path to registration to those operating lawfully within the U.S., we can only conclude that this is the latest political effort to target even the best actors building technology on blockchains," they wrote.

The news was met with outrage in the crypto community, who generally saw the action as indicative of an overly aggressive posture by the SEC to crack down on defi and crypto more broadly.

$23 million goes missing amid STFIL claims that they're being investigated

STFIL, a protocol that promises liquid staking and "leverage mining" to holders of Filecoin's FIL token, announced on Twitter that "We believe that the STFIL core technical team is under investigation by local Chinese police."

According to STFIL, while some of the core team members were detained by Chinese police, FIL tokens were moved to an unknown wallet. They also acknowledged that there had been "abnormal, unscheduled upgrades to the protocol". They asked their community members for help in tracking the wallet.

Some speculated that the story was fake, and that the project had stolen the funds. However, Chinese police have in several instances cracked down on people and companies involved in Filecoin-related projects, including an $83.3 million alleged pyramid scheme in August 2023 and a group of Filecoin Ponzi schemers in 2021. Filecoin mining became popular in China after its 2018 initial coin offering, and also became a magnet for Ponzi schemes and other scams.

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