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{"actor":"system:backfill","investigation_id":"e325ed97-8071-4257-8a68-a77c693620fc","kind":"publish","page_slug":"pepe","published_at":"2026-05-14T06:02:04.432Z","sequence_num":3,"snapshot":{"content_type":"investigation","entity_name":"Pepe (PEPE)","sections":[{"content":"PEPE is an ERC-20 token launched on April 14–17, 2023, on the Ethereum blockchain (contract address 0x6982508145454Ce325dDbE47a25d4ec3d2311933). Its total supply is 420,690,000,000,000 tokens, a figure chosen as a cultural reference. The project was created by an anonymous team and explicitly markets itself as a pure meme coin with no utility, no roadmap, and no intrinsic value — a design choice the team frames as a feature rather than a deficiency. According to its whitepaper, approximately 93.1% of tokens were sent to liquidity pools with LP tokens burned and the contract renounced at launch. The remaining portion was held in a multi-signature team wallet intended for centralized exchange (CEX) listings. PEPE bills itself as having 'no tax,' distinguishing it from earlier meme coins that charged transaction fees. The token rapidly became one of the top meme coins by market capitalization and trading volume, listed on Binance, OKX, KuCoin, Bybit, Coinbase, and Robinhood.","heading":"Project Overview","severity":"low","sources":[{"credibility":1,"name":"Fortune: How the Pepe token soared past a $1.6B market cap in 3 weeks","type":"news_article","url":"https://fortune.com/crypto/2023/05/09/how-the-pepe-token-fueled-by-pure-memetic-power-soared-past-a-1-6-billion-market-cap-in-3-weeks-and-then-tumbled/"},{"credibility":1,"name":"Etherscan: PEPE ERC-20 Token Contract","type":"on_chain","url":"https://etherscan.io/token/0x6982508145454ce325ddbe47a25d4ec3d2311933"},{"credibility":2,"name":"CoinMarketCap: Pepe price and market data","type":"other","url":"https://coinmarketcap.com/currencies/pepe/"}]},{"content":"On August 24, 2023, approximately 16 trillion PEPE tokens — roughly 60% of the 26 trillion tokens held in the project's multi-signature treasury wallet and valued at approximately $15.7 million — were transferred to centralized exchanges without the stated authorization of the remaining team. The tokens were sent to Binance, OKX, KuCoin, and Bybit for liquidation. The anonymous founder of the project published a statement on August 25, 2023, blaming three former team members, stating: 'Yesterday these 3 ex-team members came back behind my back, logged onto the multi-sig, stole 16 Trillion / 60% of the 26 trillion multi-sig tokens, and sent them to exchanges to sell.' The founder further described the project as having been 'plagued by inner strife with a portion of the team being bad actors led by big egos and greed.' Following the transfers, the accused individuals allegedly deleted their social media accounts and removed themselves from the multi-sig. A material discrepancy was identified by research firm ASXN, which reported that the change in multi-signature threshold — from 5-of-8 signers required to 2-of-8 signers — was 'signed by five' wallets, raising questions about the founder's account of events. The remaining founder committed to burning the remaining 10 trillion tokens under team control and transferred full control of the multi-sig to themselves. PEPE's price fell approximately 15% on August 25, 2023, following disclosure of the transfers.","heading":"Multi-Signature Wallet Theft (August 2023)","severity":"critical","sources":[{"credibility":1,"name":"CoinDesk: Pepecoin Says 'Bad Actors' on Team Stole $15M PEPE","type":"news_article","url":"https://www.coindesk.com/tech/2023/08/28/pepecoin-says-bad-actors-on-team-stole-15m-pepe"},{"credibility":1,"name":"The Block: Pepe confirms former team members stole $15 million from multisig","type":"news_article","url":"https://www.theblock.co/post/247576/pepe-team-members-stole-15-million-from-multisig"},{"credibility":2,"name":"CryptoSlate: Pepecoin founder blames 'nefarious ex-team members' for unexpected $16M withdrawal","type":"news_article","url":"https://cryptoslate.com/pepecoin-founder-blames-nefarious-ex-team-members-for-unexpected-16m-withdrawal/"},{"credibility":2,"name":"CoinTelegraph: Rogue Pepecoin team members blamed for $16M PEPE multisig withdrawal","type":"news_article","url":"https://cointelegraph.com/news/rogue-pepecoin-team-members-blamed-for-pepe-multsig-withdrawal"},{"credibility":2,"name":"Decrypt: Last PepeCoin Founder Claims PEPE Could Still Thrive","type":"news_article","url":"https://decrypt.co/153894/last-remaining-pepecoin-founder-says-pepecoin-could-still-thrive"}]},{"content":"On October 22, 2024, the SEC's Division of Enforcement issued a Wells Notice to Eric Wallace, identified as one of the individuals involved in the creation and development of the Pepe memecoin. The Wells Notice indicated that SEC staff had made a preliminary determination to recommend an enforcement action against Wallace for alleged violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. The potential enforcement action relates to the transfer of approximately 4% of Pepe tokens to members of the Pepe Development Team in August 2023 — the same incident in which the multi-sig wallet was drained. Wallace, represented by Marlon Q. Paz of Latham & Watkins LLP, denied any wrongdoing and disputed the SEC's characterization of PEPE as a security. On February 27, 2025, the SEC's Division of Corporation Finance issued a staff statement clarifying that meme coins fitting the PEPE profile — crypto assets inspired by internet memes with no functional utility, no yield, and no rights to future profits — generally do not constitute securities under federal law. As a result, meme coins including PEPE would likely fall under CFTC commodity jurisdiction rather than SEC securities jurisdiction. Whether the SEC enforcement action against Wallace was formally dropped following this guidance had not been publicly confirmed as of the date of this investigation. A Wells Notice is preliminary and does not constitute a formal charge.","heading":"SEC Wells Notice and Regulatory Action","severity":"high","sources":[{"credibility":1,"name":"PR Newswire: SEC Wells Notice regarding Pepe memecoin (December 2024)","type":"regulatory","url":"https://www.prnewswire.com/news-releases/sec-wells-notice-regarding-pepe-memecoin-302321814.html"},{"credibility":1,"name":"SEC.gov: Staff Statement on Meme Coins","type":"regulatory","url":"https://www.sec.gov/newsroom/speeches-statements/staff-statement-meme-coins"},{"credibility":2,"name":"FinTech Law Blog: SEC Provides Welcome Clarity Regarding Meme Coins","type":"research","url":"https://www.fintechlawblog.com/2025/03/01/sec-provides-welcome-clarity-regarding-meme-coins/"}]},{"content":"On August 26, 2023, Jeremy 'Pauly' Cahen — a crypto influencer and founder of NotLarvaLabs who was involved in promoting PEPE — published allegations on X (formerly Twitter) that members of the Pepecoin team had engaged in insider trading ahead of and during the multi-sig drain. Cahen alleged that the team held approximately $16–17 million worth of PEPE tokens across nine wallets and had strategically moved tokens from centralized exchange wallets while initiating significant short positions before the public disclosure of the multi-sig event. Cahen also alleged that on-chain analyst Yazan identified approximately 400 billion PEPE tokens sold by insiders. Cahen indicated he intended to work with law enforcement. Separately, Cahen alleged that the individual identified as the founder — Zachary Testa — and associates had profited materially from PEPE, including allegedly purchasing a purple Lamborghini reportedly valued at approximately $865,000. Cahen also alleged that the team had not provided any compensation to Matt Furie, the original Pepe the Frog character creator. These allegations originate primarily from Cahen and on-chain analysts and have not been independently confirmed through court filings or regulatory actions. They should be treated as alleged and unverified.","heading":"Insider Trading Allegations","severity":"high","sources":[{"credibility":2,"name":"Benzinga: Pepecoin Team Faces Insider Trading Accusations Amid Token Theft Controversy","type":"news_article","url":"https://www.benzinga.com/markets/cryptocurrency/23/08/34056332/pepecoin-team-faces-insider-trading-accusations-amid-token-theft-controversy"},{"credibility":2,"name":"Crypto.news: Massive Pepe coin theft sparks allegations of insider trading","type":"news_article","url":"https://crypto.news/massive-pepe-coin-theft-sparks-allegations-of-insider-trading/"},{"credibility":2,"name":"TokenPost: Crypto Advocate Pauly Accuses Pepecoin Team of Insider Trading Amidst Token Theft","type":"news_article","url":"https://tokenpost.com/Pepecoin-Advocate-Cahen-Accuses-Pepecoin-Team-of-Insider-Trading-Amidst-Token-Theft-10576"}]},{"content":"PEPE launched with a fully anonymous team, which is common among meme coins but represents a governance and accountability risk. On August 25, 2023, Jeremy 'Pauly' Cahen alleged on X that the founder of PEPE is Zachary Testa, a landscape and aerial photographer based in Phoenix, Arizona, operating under the aliases @degenharambe and @LordKekLol. Cahen alleged that Testa graduated from Arizona State University in 2018 with a degree in marketing. The project has never officially confirmed the identity of any team member. A separate developer named Eric Wallace was identified by the SEC in the October 2024 Wells Notice as 'one of the individuals involved in the creation and development of the Pepe memecoin,' making Wallace's involvement the only publicly documented, officially attributed team identity. The relationship between Testa and Wallace, and whether either retains an active role, is not publicly confirmed. The anonymous remaining founder stated after the August 2023 incident that the multi-sig had been updated to place them in sole control, and committed to burning remaining team-held tokens.","heading":"Founder Identity and Team Anonymity","severity":"medium","sources":[{"credibility":2,"name":"CoinGape: Pepe Coin Founder Zachary Testa Net Worth","type":"news_article","url":"https://coingape.com/education/zachary-testa-networth/"},{"credibility":2,"name":"Blockchain.news: Breaking: Zachary Testa Identified as Pepe Coin Founder Following Price Crash","type":"news_article","url":"https://blockchain.news/news/breaking-zachary-testa-identified-as-pepe-coin-founder-following-price-crash"},{"credibility":1,"name":"PR Newswire: SEC Wells Notice regarding Pepe memecoin","type":"regulatory","url":"https://www.prnewswire.com/news-releases/sec-wells-notice-regarding-pepe-memecoin-302321814.html"}]},{"content":"The Pepe the Frog character was created by artist Matt Furie and first appeared in his comic 'Boy's Club' in 2005. Furie holds copyright over the character. The PEPE token's branding directly uses imagery derived from the Pepe the Frog character. The token's website acknowledges that PEPE 'has no relation with the original Pepe the Frog meme or Matt Furie.' Furie stated publicly in 2023 that he was unaware of the token's existence: 'Actually, this is the first I've heard of it. What is Pepecoin?' As of the date of this investigation, Furie has not pursued legal action specifically against the PEPE token creators, and the project team has not compensated Furie. Furie has a documented history of enforcing his copyright: he obtained a $15,000 settlement from InfoWars in 2019, forced the removal of an NFT collection from OpenSea valued at approximately $7 million in trading volume, and won a copyright lawsuit against a children's book author who used the character. Some community reporting alleged the PEPE team members 'share affiliations with entities like Binance and SushiSwap,' though these claims were not independently verified. The copyright risk remains unresolved and theoretically could expose the project to legal challenge.","heading":"Intellectual Property and Copyright Exposure","severity":"medium","sources":[{"credibility":2,"name":"Protos: Pepe creator Matt Furie says he didn't know Pepecoin existed","type":"news_article","url":"https://protos.com/pepe-creator-matt-furie-says-he-didnt-know-pepecoin-existed/"},{"credibility":2,"name":"DailyCoin: Beware of Pepe the Frog Memecoins: Copyright Issues Could Put Your Investment at Risk","type":"news_article","url":"https://dailycoin.com/beware-of-pepe-the-frog-memecoins-copyright-issues-could-put-your-investment-at-risk/"},{"credibility":1,"name":"Hollywood Reporter: InfoWars Pays $15K to Settle 'Pepe the Frog' Copyright Lawsuit","type":"news_article","url":"https://www.hollywoodreporter.com/business/business-news/infowars-pays-15k-settle-pepe-frog-copyright-lawsuit-1217193/"}]},{"content":"The rapid rise of PEPE in April–May 2023 attracted a wave of scammers exploiting the token's brand recognition. Within days of the token's debut, blockchain security firm PeckShield identified a phishing site (pepecoin.vip) and a fake X (Twitter) account (@pepecoineth_) that had accumulated over 11,800 followers. These fraudulent entities resulted in the theft of approximately 3.56 billion PEPE tokens across two separate transactions. Additionally, the official PEPE website was later exploited and redirected users to a wallet drainer. Multiple rug-pull tokens and clone projects using 'Pepe' branding proliferated during the meme coin frenzy. A broader analysis by Blockfence identified that memecoin-related scams during 2023 defrauded approximately 42,000 victims and amassed approximately $32 million. These third-party fraud events are distinct from the PEPE project itself but reflect the hazardous ecosystem surrounding the token.","heading":"Third-Party Scams and Ecosystem Fraud","severity":"high","sources":[{"credibility":2,"name":"The Crypto Basic: PEPE coin Fake Website & Twitter Stole 3.56B PEPE Tokens","type":"news_article","url":"https://thecryptobasic.com/2023/04/19/pepe-coin-fake-website-twitter-stole-3-56b-pepe-tokens/"},{"credibility":2,"name":"CoinTelegraph: Pepe memecoin frenzy gets unwanted attention from scammers","type":"news_article","url":"https://cointelegraph.com/news/pepe-memecoin-frenzy-gets-unwanted-attention-from-scammers"},{"credibility":2,"name":"CoinMarketCap Academy: Pepe Website Exploited, Redirects Users to Wallet Drainer","type":"news_article","url":"https://coinmarketcap.com/academy/article/pepe-website-exploited-redirects-users-to-wallet-drainer"}]},{"content":"PEPE launched on or around April 14–18, 2023, and within three weeks achieved a market capitalization of approximately $1.6 billion, representing a price increase of over 900% from its initial trading price. By May 9, 2023, its market cap had retreated to approximately $800 million. The August 2023 multi-sig incident caused a price decline of approximately 15%. In 2024, PEPE experienced a sustained rally, increasing approximately 1,900% over the calendar year. On December 9, 2024, PEPE reached its all-time high price of approximately $0.00002829, with a corresponding market cap of approximately $11 billion. By April–May 2025, the token had declined approximately 75–85% from its all-time high. As of the investigation date in May 2026, PEPE is ranked approximately #53 by market capitalization at approximately $1.7 billion. The token was listed on Robinhood and Coinbase in November 2024, and European trading pairs for PEPE were removed by some platforms in September 2024 following MiCA (Markets in Crypto-Assets Regulation) enforcement. Its extreme volatility and lack of utility make it a highly speculative instrument.","heading":"Market Performance and Volatility","severity":"medium","sources":[{"credibility":2,"name":"FXStreet: Pepe meme coin hits new all-time high, with market cap surpassing $11 billion","type":"news_article","url":"https://www.fxstreet.com/cryptocurrencies/news/pepe-meme-coin-hits-new-all-time-high-with-market-cap-surpassing-11-billion-202412090742"},{"credibility":2,"name":"CCN: PEPE Sets Another All-Time High — Price up 1,900% in 2024","type":"news_article","url":"https://www.ccn.com/analysis/crypto/pepe-all-time-high-price/"},{"credibility":1,"name":"CoinDesk: Pepe Coin Spikes on Coinbase International Plan to List Perpetual Futures","type":"news_article","url":"https://www.coindesk.com/markets/2024/04/11/pepe-coin-spikes-on-coinbase-international-plan-to-list-perpetual-futures"}]}],"sources_used":[{"credibility":1,"name":"CoinDesk: Pepecoin Says 'Bad Actors' on Team Stole $15M PEPE","type":"news_article","url":"https://www.coindesk.com/tech/2023/08/28/pepecoin-says-bad-actors-on-team-stole-15m-pepe"},{"credibility":1,"name":"The Block: Pepe confirms former team members stole $15 million from multisig","type":"news_article","url":"https://www.theblock.co/post/247576/pepe-team-members-stole-15-million-from-multisig"},{"credibility":1,"name":"Fortune: How the Pepe token soared past a $1.6B market cap in 3 weeks","type":"news_article","url":"https://fortune.com/crypto/2023/05/09/how-the-pepe-token-fueled-by-pure-memetic-power-soared-past-a-1-6-billion-market-cap-in-3-weeks-and-then-tumbled/"},{"credibility":1,"name":"PR Newswire: SEC Wells Notice regarding Pepe memecoin","type":"regulatory","url":"https://www.prnewswire.com/news-releases/sec-wells-notice-regarding-pepe-memecoin-302321814.html"},{"credibility":1,"name":"SEC.gov: Staff Statement on Meme Coins","type":"regulatory","url":"https://www.sec.gov/newsroom/speeches-statements/staff-statement-meme-coins"},{"credibility":1,"name":"Hollywood Reporter: InfoWars Pays $15K to Settle 'Pepe the Frog' Copyright Lawsuit","type":"news_article","url":"https://www.hollywoodreporter.com/business/business-news/infowars-pays-15k-settle-pepe-frog-copyright-lawsuit-1217193/"},{"credibility":1,"name":"Etherscan: PEPE ERC-20 Token Contract","type":"on_chain","url":"https://etherscan.io/token/0x6982508145454ce325ddbe47a25d4ec3d2311933"},{"credibility":2,"name":"CryptoSlate: Pepecoin founder blames 'nefarious ex-team members'","type":"news_article","url":"https://cryptoslate.com/pepecoin-founder-blames-nefarious-ex-team-members-for-unexpected-16m-withdrawal/"},{"credibility":2,"name":"CoinTelegraph: Rogue Pepecoin team members blamed for $16M PEPE multisig withdrawal","type":"news_article","url":"https://cointelegraph.com/news/rogue-pepecoin-team-members-blamed-for-pepe-multsig-withdrawal"},{"credibility":2,"name":"Decrypt: Last PepeCoin Founder Claims PEPE Could Still Thrive","type":"news_article","url":"https://decrypt.co/153894/last-remaining-pepecoin-founder-says-pepecoin-could-still-thrive"},{"credibility":2,"name":"Benzinga: Pepecoin Team Faces Insider Trading Accusations","type":"news_article","url":"https://www.benzinga.com/markets/cryptocurrency/23/08/34056332/pepecoin-team-faces-insider-trading-accusations-amid-token-theft-controversy"},{"credibility":2,"name":"FXStreet: Pepe meme coin hits new all-time high, market cap surpassing $11 billion","type":"news_article","url":"https://www.fxstreet.com/cryptocurrencies/news/pepe-meme-coin-hits-new-all-time-high-with-market-cap-surpassing-11-billion-202412090742"},{"credibility":2,"name":"Protos: Pepe creator Matt Furie says he didn't know Pepecoin existed","type":"news_article","url":"https://protos.com/pepe-creator-matt-furie-says-he-didnt-know-pepecoin-existed/"},{"credibility":2,"name":"The Crypto Basic: PEPE coin Fake Website & Twitter Stole 3.56B PEPE Tokens","type":"news_article","url":"https://thecryptobasic.com/2023/04/19/pepe-coin-fake-website-twitter-stole-3-56b-pepe-tokens/"},{"credibility":2,"name":"CoinGape: Pepe Coin Founder Zachary Testa Net Worth","type":"news_article","url":"https://coingape.com/education/zachary-testa-networth/"},{"credibility":2,"name":"FinTech Law Blog: SEC Provides Welcome Clarity Regarding Meme Coins","type":"research","url":"https://www.fintechlawblog.com/2025/03/01/sec-provides-welcome-clarity-regarding-meme-coins/"},{"credibility":2,"name":"CoinMarketCap: Pepe price and market data","type":"other","url":"https://coinmarketcap.com/currencies/pepe/"},{"credibility":2,"name":"CCN: PEPE Sets Another All-Time High — Price up 1,900% in 2024","type":"news_article","url":"https://www.ccn.com/analysis/crypto/pepe-all-time-high-price/"}],"summary":"PEPE is an anonymous-team ERC-20 meme coin launched in April 2023 on Ethereum, inspired by the Pepe the Frog internet character. It reached a market cap of $1.6 billion within three weeks of launch and hit an all-time high of $11 billion in December 2024. The project has been marked by a significant insider theft of approximately $15.7 million in August 2023, an SEC Wells Notice issued to a named developer, alleged insider trading by former team members, and unresolved intellectual property exposure stemming from the use of Matt Furie's copyrighted character.","timeline":[{"date":"2023-04-14","event":"PEPE token deployed on Ethereum; trading begins on decentralized exchanges","source":"Fortune","source_url":"https://fortune.com/crypto/2023/05/09/how-the-pepe-token-fueled-by-pure-memetic-power-soared-past-a-1-6-billion-market-cap-in-3-weeks-and-then-tumbled/"},{"date":"2023-04-18","event":"CoinGecko begins tracking PEPE; price has already increased significantly since deployment","source":"Fortune","source_url":"https://fortune.com/crypto/2023/05/09/how-the-pepe-token-fueled-by-pure-memetic-power-soared-past-a-1-6-billion-market-cap-in-3-weeks-and-then-tumbled/"},{"date":"2023-04-19","event":"PeckShield identifies phishing site (pepecoin.vip) and fake PEPE Twitter account; 3.56 billion PEPE tokens stolen from users","source":"The Crypto Basic","source_url":"https://thecryptobasic.com/2023/04/19/pepe-coin-fake-website-twitter-stole-3-56b-pepe-tokens/"},{"date":"2023-05-09","event":"PEPE market cap reaches approximately $1.6 billion, then retreats to approximately $800 million; token listed on Crypto.com and Binance","source":"Fortune","source_url":"https://fortune.com/crypto/2023/05/09/how-the-pepe-token-fueled-by-pure-memetic-power-soared-past-a-1-6-billion-market-cap-in-3-weeks-and-then-tumbled/"},{"date":"2023-08-24","event":"16 trillion PEPE tokens (~$15.7M, 60% of multi-sig wallet) transferred to Binance, OKX, KuCoin, and Bybit; multi-sig threshold changed from 5/8 to 2/8 signers","source":"CoinDesk","source_url":"https://www.coindesk.com/tech/2023/08/28/pepecoin-says-bad-actors-on-team-stole-15m-pepe"},{"date":"2023-08-25","event":"Anonymous PEPE founder publicly blames three former team members for the unauthorized transfer; PEPE price falls approximately 15%; Jeremy Cahen (Pauly) alleges founder is Zachary Testa","source":"CryptoSlate","source_url":"https://cryptoslate.com/pepecoin-founder-blames-nefarious-ex-team-members-for-unexpected-16m-withdrawal/"},{"date":"2023-08-26","event":"Jeremy Cahen alleges insider trading by the PEPE team, claiming members held ~$16-17M in PEPE across nine wallets and initiated short positions before public disclosure","source":"Benzinga","source_url":"https://www.benzinga.com/markets/cryptocurrency/23/08/34056332/pepecoin-team-faces-insider-trading-accusations-amid-token-theft-controversy"},{"date":"2023-08-28","event":"Remaining PEPE founder commits to burning all 10 trillion remaining team-held tokens and accepts sole control of updated multi-sig","source":"Decrypt","source_url":"https://decrypt.co/153894/last-remaining-pepecoin-founder-says-pepecoin-could-still-thrive"},{"date":"2024-03-14","event":"PEPE reaches a then-all-time high of approximately $0.00001074","source":"CCN","source_url":"https://www.ccn.com/analysis/crypto/pepe-all-time-high-price/"},{"date":"2024-10-22","event":"SEC Division of Enforcement issues Wells Notice to Eric Wallace, a named PEPE developer, for alleged violations of Securities Act of 1933 and Securities Exchange Act of 1934 related to the August 2023 token transfers","source":"PR Newswire","source_url":"https://www.prnewswire.com/news-releases/sec-wells-notice-regarding-pepe-memecoin-302321814.html"},{"date":"2024-11-13","event":"PEPE listed on Robinhood and Coinbase; token surges on major exchange access expansion","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2024/04/11/pepe-coin-spikes-on-coinbase-international-plan-to-list-perpetual-futures"},{"date":"2024-12-09","event":"PEPE reaches all-time high price of approximately $0.00002829, corresponding to a market cap of approximately $11 billion","source":"FXStreet","source_url":"https://www.fxstreet.com/cryptocurrencies/news/pepe-meme-coin-hits-new-all-time-high-with-market-cap-surpassing-11-billion-202412090742"},{"date":"2025-02-27","event":"SEC Division of Corporation Finance issues staff statement clarifying that meme coins meeting PEPE's profile do not constitute securities under federal law; enforcement jurisdiction shifts to CFTC","source":"SEC.gov","source_url":"https://www.sec.gov/newsroom/speeches-statements/staff-statement-meme-coins"}]},"v":1}