According to The Information, MoonPay never disclosed that $150 million of the Series A funding was used to purchase shares from insiders including Soto-Wright, and never went to the company. Several weeks after the funding round, Soto-Wright purchased a $38 million Miami mansion.
In June 2022, Bybit settled a complaint from the Ontario Securities Commission for operating an unregistered platform and offering unregistered securities to Ontarian investors. The company disgorged CA$2.5 million (US$1.9 million) as result. At the time, the OSC stated that Bybit was working to come into compliance with the OSC's requirements.
Apparent whitehat exploits El Dorado Exchange, claiming developers built in a backdoor to steal user funds
The attacker promised to return all funds, minus a 10% "white hat fee", if the developers "admit to manipulating the prices", and also offered to disclose other vulnerabilities they claimed to have found in the project.
The project founders wrote in response: "Yes we acknowledge making an ill-advised decision to manipulate the price. However our intention was to blacklist those who had previously exploited the system, fully aware that all transactions are recorded on the blockchain. We did not aim to misappropriate users funds as this would leave a traceable record. We will promptly remove the problematic bomb contract."
The exploiter began returning funds shortly afterwards.
The exchange offered no estimate of when withdrawals might be re-enabled.
After the attack, Jimbos Protocol tweeted "We are aware of the exploit regarding our protocol and are actively in contact with law enforcement and security professionals. We will release further information when possible." They also sent an on-chain message to the exploiter, offering to stop all investigations if the hacker returns 90% of the stolen funds.
Four executives were arrested in connection to the investigation in April, under suspicion that they had received ₩2.4 billion (~$2.2 million) in bribes in exchange for listing dozens of coins.
Coinone is one of the most popular South Korean cryptocurrency exchanges. In July 2022, it was among the seven exchanges raided by Korean authorities in the wake of the Terra/Luna collapse, as the country began applying harsher scrutiny to crypto platforms.
However, Unbanked also let on that their closure was more related to an investment falling through than to any regulatory issues. The company wrote that a $5 million investment was never delivered, and that the company had "exhausted all options" funding-wise.
- "Unbanked will be winding down", Unbanked
The decision comes amidst broader troubles for DCG, which is embroiled in the bankruptcy proceedings of its Genesis subsidiary. Earlier in May, DCG missed a $630 million payment to Genesis.
The scam was helped along by ben.eth, a Twitter personality who retweeted one of the tweets by the compromised account in which Aoki appeared to endorse a token created by ben.eth. According to crypto sleuth zachxbt, multiple followers of ben.eth were impacted by his retweet, which zachxbt characterized as "quote tweet[ing] a phishing scam posted by the compromised @steveaoki account for clout". Ben.eth ultimately promised to reimburse his fans who lost money thanks to his tweets.