9 ways Spark can have a fund loss🧵
Since the KelpDAO exploit, Spark has gained momentum amid DeFi’s “flight to safety”.
Even though Spark is known for its conservative design, there are several risks worth noting.
Since the case looks very week (you can't steal from one set of victims to pay another), I would guess the goal of those behind the case is to damage defi by delaying the return of user funds
A thief does not own what he steals.
Aave LLC filed an emergency motion today to vacate the restraining notice served on Arbitrum DAO, rejecting the baseless claim that stolen property belongs to the thief. We will fight vigorously for DeFi.
The Arbitrum freeze story took a turn missed by many (Santiment MCP + Claude):
🗳️ Arbitrum DAO opened a vote May 1 to release the $71M frozen ETH to DeFi United (the Aave-led Kelp recovery fund). 16.9M $ARB voted yes in the first hour. No opposition.
⚖️ April 30: a US federal court issued a restraining order blocking any movement of the funds. Plaintiffs are terrorism victims with $877M in unpaid judgments against North Korea, claiming the seized ETH as DPRK assets.
📊 $ARB social mentions are now in their second wave — 22/4h on Apr 30 (court order news), quiet for 3 days, climbing again today (17/4h).
The DAO ratified the freeze. The court re-routed the funds. DeFi recovery is now dependent on a US court hearing.
The proposal to release the ETH frozen by the Arbitrum Security Council to DeFi United has moved to Snapshot for its first round of voting.
These funds would support efforts to restore rsETH’s backing and normalize market conditions.
https://t.co/Trje3W9PY9
The Arbitrum KelpDAO thing is pretty simple to me.
North Korea hacked $292 million.
$71 million of it was sitting on Arbitrum.
The Security Council, 9 out of 12 elected members, froze it before the hacker could bridge it back to mainnet.
And now people are upset about decentralization?
Yeah, nobody should be able to touch your funds.
That's the whole point.
But we're talking about the Lazarus Group here, state-sponsored hackers and stolen funds mid-withdrawal.
This isn't some DAO freezing a competitor's treasury because they felt like it. The council didn't even decide what happens to the money; it goes to a full DAO vote now.
They hit pause, not delete.
I'd rather have governance that can act when DPRK drains a quarter billion than governance that watches it happen so we can all feel good about being decentralized.
@arbitrum I don't give a damn about your decentralization, if the arbitrum returns my ethers, I'll just say thank you if others couldn't help. I didn't participate in kelp, why should I suffer. Thanks to arbitrum, I will continue to use your network!
@arkham I don't give a damn about your decentralization, if the arbitrum returns my ethers, I'll just say thank you if others couldn't help. I didn't participate in kelp, why should I suffer. Thanks to arbitrum, I will continue to use your network!
The Arbitrum Security Council has taken emergency action to freeze the 30,766 ETH being held in the address on Arbitrum One that is connected to the KelpDAO exploit. The Security Council acted with input from law enforcement as to the exploiter’s identity, and, at all times, weighed its commitment to the security and integrity of the Arbitrum community without impacting any Arbitrum users or applications.
After significant technical diligence and deliberation, the Security Council identified and executed a technical approach to move funds to safety without affecting any other chain state or Arbitrum users.
As of April 20 11:26pm ET the funds have been successfully transferred to an intermediary frozen wallet. They are no longer accessible to the address that originally held the funds, and can only be moved by further action by Arbitrum governance, which will be coordinated with relevant parties.
Insider who made $400,000 on Maduro's capture at Polymarket – could turn out to be someone connected to Steven Charles Witkoff (WLFI Co-Founder)
The entire CT was talking yesterday about an insider who placed around $32k just a few hours before the well–known events in Venezuela, earning a total of $400,000.
Insider's account:
https://t.co/WAG6JeRZ3X
The market where he won the $400k:
https://t.co/s70PNUejJA
I decided to dig into the chain in search of any clues.
Found 2 wallets that were funding the @Polymarket account:
- 0x9c7fca7d24162f0dd09d853e999c3f954ed0f8d1 (https://t.co/CujwkcSqEN)
- 2i7HJJTs8Ht25H8fSjJJSsgGp2HE3umxMrcEa1Cq6hV3 (https://t.co/C7lT419DKz)
Both accounts have no transactions other than funding from the Coinbase exchange and the subsequent deposit to Polymarket.
I noticed that the second wallet (2i7HJJ) was funded from Coinbase with 252.39 SOL on January 1st at 11:53 PM UTC.
I decided to check all deposits to Coinbase within a day before the insider's wallet withdrawal and found one match with 99% accuracy.
BCcTrxcowNeUqhr4yPtAMy5PhhQ5eD8hsjHYmMS8FaV8 (STVLU.SOL) – from this wallet there was a deposit to Coinbase through a deposit address of 252.91 SOL on January 1st at 00:48 AM UTC, meaning approximately 23 hours before the withdrawal to the insider's wallet.
I noticed that this wallet had several registered ENS domains: STVLU.SOL and StCharles.SOL
And the first funder – ES6SiK66UZcsPevTgfVtKtay4o1vWUepeVvb5kfWnJXF with ENS Solhundred.sol
Moving to the latter, we see transactions of $11 million with someone with ENS Stevencharles.sol (22Tqm7fBbrGb5XmT9UkcZhSPjT1Q1DMBatacpmsJGkUz)
Steven Charles – or Steven Charles Witkoff(?), one of the co–founders of World Liberty Finance (WLFI), meaning a person who potentially had access to insider information.
All 3 wallets (STVLU.sol, Solhundred.sol, StevenCharles.sol) – are connected by the same deposit addresses on the Coinbase exchange.
From the insider account on Polymarket, the winnings of approximately $440k were withdrawn to Coinbase 18 hours ago.
14 hours ago, Fartcoin tokens worth $170k were withdrawn from Coinbase to the STVLU.sol (stcharles.sol) wallet.
Another coincidence? Or was part of the profits from insider trading on Polymarket used to buy Fartcoin?
In total, we have several interesting coincidences:
- The amount of the deposit to Coinbase and the amount withdrawn to the insider's wallet for the deposit to Polymarket match with 99% accuracy with a 23–hour difference.
- The ENS(SNS) StevenCharles.sol and StCharles.sol on these wallets match with Steven Charles Witkoff. (Together with the first point, such a coincidence looks strange, doesn't it?)
- The time interval between the withdrawal of winnings from Polymarket to Coinbase and the receipt of Fartcoin to the stvlu.sol wallet is 3–4 hours.
Your take?
Are these just coincidences, or is it really someone connected to Steven Witkoff using insider information to trade on Polymarket?
UNIfication has officially been executed onchain
✓ Labs interface fees are set to zero
✓ 100M UNI has been burned from the treasury
✓ Fees are on for v2 and a set of v3 pools on mainnet
✓ Unichain fees flow to UNI burn (after OP & L1 data costs)
Let the burn begin
When it comes to storing or using $FIRO for transaction, native FIRO is the better choice. 🔐
You retain full access to the #privacy that Lelantus Spark provides.
BEP-FIRO has its uses for cross-chain convenience, but it doesn’t carry any of the privacy protections that make FIRO what it is.🔄
We’re also working toward a more decentralized cross-chain bridging solution. So stay tuned!
If you want real #privacy and full utility, use native $FIRO 🛡️