Web3 Is Going Just Great

The recent developments in the cryptocurrency sector have raised concerns about fraud and mismanagement. The Commodity Futures Trading Commission (CFTC) has subpoenaed Hit Network, a crypto media company previously led by Ben "BitBoy" Armstrong, as part of an investigation into potential fraud involving various tokens, including the $BEN token. Meanwhile, the Kujira project faced a significant setback, incurring $2 million in bad debt due to leveraged bets, leading to a 60% drop in the $KUJI token price. ConvergenceFi also suffered a hack resulting in a loss of $210,000 due to a flaw in its smart contract. The decentralized exchange ZKX abruptly shut down, prompting accusations of a rug pull from investors who felt misled about the project's viability. Additionally, Nader Al-Naji, founder of BitClout, was arrested on wire fraud charges for misleading investors about the use of funds. DraftKings announced the closure of its Reignmakers NFT project due to legal issues, leaving many users dissatisfied with the compensation offered. Lastly, the Compound DAO experienced a governance attack, approving a controversial proposal that allocated $24 million to an outside group, raising alarms about the future of the protocol's decentralization.

- CFTC investigates Hit Network for potential fraud linked to Ben Armstrong.

- Kujira project suffers $2 million loss, causing a significant drop in token value.

- ConvergenceFi hacked, losing $210,000 due to smart contract vulnerabilities.

- ZKX decentralized exchange shuts down amid accusations of misleading investors.

- DraftKings halts Reignmakers NFT project due to legal challenges.