Amidst many growing concerns regarding projects over Solana network, a new issue reported related to the same. People with familiarity with the matter stated the United States Department of Justice (DOJ) proceeded with the investigation over Saber Labs creator brothers, Ian and Dylan Macalinao. The platform is a stablecoin exchange based on Solana.
The investigations are said to be the result of a report published in August noting the brothers duo created an interlocking financial products ecosystem by using eleven pseudonymous identities. These products are said to make the crypto deposits reach to double and even triple the count simply by passing on the tokens. Behind Solana’s bull run of 2021, this instance acted as a key factor.
Citing the source, it was reported that the investigation would be looking for the crucial information over the crypto projects’ web around the Saber. Decentralized yield farming app Sunny Aggregator will be the part of this probe along with the stablecoin project Cashio.
The creator duo reportedly gamified the total value locked of the project so much that crypto space statistics aggregator DefiLlama went on to change the popular metric’s presentation.
Saber was also reported to plan a transition to Aptos blockchain network which later went on to get abandoned.
They left Protagonist VC, a crypto venture capital firm. Additionally, they handed over management of a few of their projects that were created under false names to Marinade, another DeFi protocol based in Solana.
The brothers’ DeFi ecosystem’s stablecoin exchange Saber, which is a cornerstone, is still active: As of the time of publication, according to its website, it had handled $4.4 million in trade activity in the previous day. Although Saber’s Discord server, where people go to ask questions and get updates, is largely dormant, Ian has tried to preserve the project’s infrastructure.
It’s all but over for the tokens of Sunny and Cashio, two enterprises whose prices have plateaued. Users are furious and questioning where the developers have disappeared on their Discord servers, flooding them with messages.
Solana had been struggling due to so many issues including network outages being one of the crucial reasons. This resulted in many projects abandoning the blockchain and shifted to other networks including its competitors. However, recently the scenario changed a bit after the launch of BONK token. The launch resulted in pushing the SOL token to significant growth. Currently it is trading around 16 USD with over 21% surge in the last seven days.
Source: https://www.thecoinrepublic.com/2023/01/12/doj-investigating-solanas-stablecoin-dex-saber-labs/