SafeMoon, a decentralized finance project, lost more than $200 million after the alleged siphoning of funds by the project’s own founders. The protocol’s founders have reportedly found themselves facing legal constraints after their official arrests, following a recent court filing by the US Securities and Exchange Commission (SEC) accusing them of defrauding investors and violating security regulations.
The founders allegedly swindled the funds from the protocol, ran the funds through a series of money laundering systems, and later cashed out to buy luxury cars and high-end real estate properties worth millions of dollars. The scandal is still developing but shows how transparency and accountability are two components that investors should look at in a project before investing their hard-earned funds.
What is SafeMoon?
SafeMoon is a digital asset platform founded in 2021 as an advocating platform for long-term investment. The platform also had a cryptocurrency called SafeMoon, launched as a BNB Smart Chain token.
The project quickly gained massive popularity among netizens for its lucrative ‘but alarming’ functionalities and celebrity endorsements from famous rappers like Lil Yachty, influencers like Jake Paul, and other popular bloggers. Almost immediately, the project’s cryptocurrency surged 19,000% at the peak of the bull market. The founders have since been arrested, and investigations are still ongoing.
Is Bitcoin Spark Safe?
From the SafeMoon scandal, investors can now invest safely by looking at key metrics that determine the safety of a digital currency platform. Bitcoin Spark spearheads transparency and accountability by undergoing smart contract and KYC audits. So far, the Bitcoin Spark smart contract has undergone three separate, comprehensive, and independent audits and has successfully passed all of them.
Investors can access the audit reports, which Vital Block, Cognitos, and Contract Wolf have publicly published. To further enhance investor trust, the project’s developers have also undergone KYC audits, and the reports have also been publicly published online. The links to these audits are available on Bitcoin Spark’s official white paper and the auditing firms’ official website pages.
Bitcoin Spark is also taking precautionary measures to ensure all customer funds are safe within the incoming ecosystem, as all on-chain activities are transparently available for review, analysis, and retrieval.
The Bitcoin Spark blockchain network is in the beta testing phase, where a selected group of participants was selected to conduct normal on-chain activities. At the same time, the team reviews the performance and possible glitches that may affect the network’s safety. The team has also hired a group of three white hat hackers whose main responsibility is to try and identify loopholes that attackers can take advantage of when executing their malicious activities.
The developers are still implementing the safety protocols on the Bitcoin Spark mining application, which is scheduled for official launch after the mainnet release. The duration between the mainnet release and the application deployment is critical as it will give the developers enough time to upgrade the bridging system connecting the application with the smart contract as well as run tests to identify and fix emanating bugs.
The application will also allow users to add security authentication layers, which include fingerprint unlocks for mobile smartphones and phase recognition technology, which will be borrowed from the existing technology. This way, users will safeguard their accounts from third parties interfering with their income or funds.
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