SafeMoon founders and executives are currently behind bars as SafeMoon drama continues to unfold. The cryptocurrency entrepreneurs were arrested recently on counts of fraud and money laundering after their invention, the SafeMoon platform, faced exploitation that rendered customer funds stolen. The investigations revealed that the founders withdrew customer deposits from the platform’s liquidity pools and bought high-end cars and luxurious real estate properties. The protocol’s drama has raised a lot of questions about how most DeFi protocols are operating without being audited by authorized and verified auditing platforms. Decentralized projects like Bitcoin Spark are gaining massive attention since reputable firms have audited them.
Safemoonarmy Drama
SafeMoon CEO John Karony and Thomas Smith, the firm’s CTO, were recently arrested after a far cry initiated by SafeMoon investors. The executives allegedly misled investors into their Ponzi scheme by selling SFM digital assets to them and withdrawing their funds through the back door to fund a luxurious lifestyle. SFM price fell in a spiral descent, recording double digits of 30%+ losses. The defendants are also charged with violations of security regulations as per information from the US Department of Justice and the US financial watchdog, the Securities and Exchange Commission.
After siphoning the funds, on-chain analysis indicates the founders attempted to hide the transactions through on-chain money laundering, which involved a series of transactions and asset conversions initiated to try to hide the funds. The transactions were finalized on centralized exchanges like Binance, which investigators say will play a pivotal role in the investigations.
Bitcoin Spark is Safe
Bitcoin Spark employs safety measures and guarantees inventors that all funds will be safe. The project’s founders have had their identities KYC verified by two independent KYC auditing firms, Cognitos and Vital Block. This assures the community members that the founders are at the forefront of promoting transparency and accountability. The founders have also walked the project through independent smart contract audits from reputable audit-conducting organizations like Contract Wolf.
Bitcoin Spark will use a unique and secure consensus mechanism dubbed proof-of-process, a hybrid consensus that uses proof-of-work and proof-of-stake processes. PoP adopts security from the proof of work consensus. The network intends to decentralize mining by making the process accessible to anyone with a smart device and an internet connection.
The decentralization of the mining process will increase the number of mining nodes, reducing the chances of operational monopoly from taking place. This centralization issue has jeopardized the safety of networks before, and the resulting 51% attack may happen on significant blockchains like Bitcoin. Bitcoin’s mining activities rely on the credibility of two mining firms, Antpool and Foundry USA, which control more than half of the mining operations.
The DeFi platform also conducts comprehensive tests to ensure the mainnet is ready for public use. The Bitcoin Spark network is under intensive review in the ongoing beta test run by selected individuals. The Bitcoin Spark team of developers is working near a couple of contracted hackers tasked with monitoring the network to determine any vulnerabilities that may jeopardize the safety of the smart contract layer, the blockchain, and the bridging system.
For more information:
Website: https://bitcoinspark.org/
