The US Department of Justice is investigating the Solana-based DEX Saber protocol for inflated usage statistics

• The US Department of Justice is investigating a team of two brothers behind Saber, a Solana-based decentralized exchange.
• The investigation follows Ian and Dylan Macalinao and their 11 pseudonymous identities who have built an ecosystem of interlocking financial products.
• Protocol developers worked on the Total Volume Locked on Solana-based projects, resulting in billions of dollars in funds being double-charged multiple times.

The US Department of Justice (DOJ), a federal executive branch of the United States government, is investigating a team of developers associated with the Solana-based Saber protocol. The duo are accused of forging identities and inflating Total Value Locked statistics, a metric used to gauge the overall health of a DeFi protocol.

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The US Department of Justice is investigating decentralized exchanges on the Solana blockchain

The U.S. federal law enforcement agency, the Department of Justice, is currently investigating the Saber Protocol, a decentralized exchange on the Solana blockchain network. Saber facilitates stablecoin swaps on Solana and works similarly to the Curve protocol on the Ethereum blockchain. The DEX allows for low-fee swaps of USD-based stablecoins.

The developer duo behind Saber Labs, Ian and Dylan Macalinao, are currently under investigation by the DOJ. The brothers are accused of creating a web of mistaken identities and an ecosystem of interlocking financial products that double and triple count crypto deposits by swapping tokens into themselves.

Total Value Locked is a key DeFi metric that measures the total value of all locked assets, including all deposits across all features the protocol offers, including staking, lending, and liquidity pools. The forgery of identities created a jumble of products within the ecosystem that boosted the TVL for Solana by billions of dollars during the peak of the crypto market’s bull run in 2021.

The investigation has revealed logs stacked on top of each other to inflate TVL, including yield farming app Sunny Aggregator and stablecoin Cashio.

The stablecoin exchange remains operational, handling a 24-hour trading volume of $39,018. As the DOJ continues its investigation, the Solana blockchain network and its native token SOL continue to bring profits to holders in the ecosystem.

SOL has reaped nearly 70% gains for holders of the Ethereum killer token over the past two weeks, riding the wave of altcoin price rallies in 2023.

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