CFTC Court Order: $30M Penalty in Fundsz Scheme

A federal court in Florida has ordered two defendants to pay more than $30 million in penalties for their roles in the Fundsz fraudulent investment scheme involving digital assets and precious metals, the Commodity Futures Trading Commission announced.

The court found that Brian Early and Alisha Ann Kingrey, who served as board members and Telegram group moderators for Fundsz, misled investors about potential profits, trading performance and investment risks. They falsely claimed Fundsz could trade investors' money using a specialized algorithm and allow withdrawals with interest. After learning of the CFTC investigation, the pair attempted to retract their profit claims and scrub Fundsz's social media presence — conduct the court weighed in its order, as ISMG reported.

The court also approved settlements with two other defendants: Rene Larralde, who died in 2023, and Juan Pablo Valcarce, who received a permanent ban on having digital assets or precious metals traded on his behalf.

Set Protocol: Small Exploit, Textbook Bug

Set Protocol suffered an exploit costing approximately 5.08 ETH after a flaw in its actualizeFee() function allowed an attacker to redeem collateral through a rounding error, Coinfomania reported October 6, with the details corroborated by Cryptonews.

The loss is trivially small, but the bug class is not: rounding-error exploitation in fee and accounting logic has produced outsized losses elsewhere, and it survives precisely because the arithmetic looks correct in unit tests with clean numbers. The incident is a reminder that edge-case values — dust amounts, minimum fees, maximum precision — are where these flaws live.

Checkpoints Today

  • 79thVault: Roughly 89% of the 16,249 BNB drained from the protocol's 79AU pool remains parked at a single consolidation address, per GoPlus, with only a 30 BNB deposit to KuCoin observed so far. The project has still published no incident report, describing the outage only as a "system upgrade." Full analysis: 79thVault Drained of $12.5M in Suspected Operator Key Compromise.
  • Abstract Chain: The consumer-focused Ethereum L2 will shut down December 15, the project confirmed, urging users to transfer assets to other networks before the deadline or risk losing access. Not a security incident — but a hard funds-safety deadline worth calendarizing for anyone holding assets on the network.
  • Uranium Finance conviction: Jonathan Spalletta's conviction Wednesday on computer fraud and money laundering charges closes the case on the 2021 exploits that drained over $53 million from the exchange, with $31 million in crypto seized in February 2025. Covered in full: Uranium Finance exploit conviction.

TrustGrade tracks the security posture of platforms and protocols in digital assets. Verified trust data: trustgrade.ai.