Verify a decision

{"actor":"system:backfill","investigation_id":"ad2f5dd7-f23d-4e1b-bcf6-19ab50898b41","kind":"publish","page_slug":"warp-protocol","published_at":"2026-05-28T18:46:34.529Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Warp Protocol","sections":[{"content":"","heading":"","severity":"high","sources":[{"credibility":2,"name":"ZachXBT tweet linking Omar Zaki to Warp Finance and Force DAO identities","type":"social_media","url":"https://x.com/zachxbt/status/1494766351608598536"},{"credibility":2,"name":"CoinTelegraph: Exec at Composable Finance allegedly doxed as convicted fraudster Omar Zaki","type":"news_article","url":"https://cointelegraph.com/news/exec-at-composable-finance-allegedly-doxed-as-convicted-fraudster-omar-zaki"},{"credibility":2,"name":"0xbrainjar Medium: A letter to our community","type":"official","url":"https://0xbrainjar.medium.com/a-letter-to-our-community-6f71d4f3ca42"},{"credibility":2,"name":"Web3 Is Going Great: Another pseudonymous DeFi exec revealed to have a checkered past","type":"news_article","url":"https://www.web3isgoinggreat.com/?id=another-pseudonymous-defi-project-exec-revealed-to-have-a-checkered-past"},{"credibility":2,"name":"CryptoNews: Exec at Composable Finance allegedly doxed as Omar Zaki","type":"news_article","url":"https://cryptonews.net/news/security/3175117/"}]},{"content":"","heading":"","severity":"high","sources":[{"credibility":1,"name":"SEC.gov: Unregistered Adviser Settles Hedge Fund Fraud Charges (Omar Zaki)","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/administrative-proceedings/33-10625-s"},{"credibility":1,"name":"SEC Order PDF: In the Matter of Omar Zaki","type":"regulatory","url":"https://www.sec.gov/files/litigation/admin/2019/33-10625.pdf"},{"credibility":2,"name":"Yale Daily News: SEC charges Yale grad with fraud","type":"news_article","url":"https://yaledailynews.com/blog/2019/04/03/sec-charges-yale-grad-with-fraud/"},{"credibility":2,"name":"Chief Investment Officer: Yale Alum Charged with Running Hedge Fund Scam While Student","type":"news_article","url":"https://www.ai-cio.com/news/yale-alum-charged-running-hedge-fund-scam-student/"},{"credibility":1,"name":"CBS News: Yale grad allegedly ran hedge fund scheme as a student","type":"news_article","url":"https://www.cbsnews.com/news/yale-grad-allegedly-ran-hedge-fund-scheme-as-a-student/"}]},{"content":"","heading":"","severity":"critical","sources":[{"credibility":2,"name":"SlowMist: Analysis of Warp Finance hacked incident","type":"research","url":"https://slowmist.medium.com/analysis-of-warp-finance-hacked-incident-cb12a1af74cc"},{"credibility":1,"name":"CoinDesk: Warp Finance Suffers Possible $8M Flash Loan Attack","type":"news_article","url":"https://www.coindesk.com/markets/2020/12/18/warp-finance-suffers-possible-8m-flash-loan-attack"},{"credibility":2,"name":"Decrypt: Warp Finance Recovers $5.8 Million Days After Hack","type":"news_article","url":"https://decrypt.co/52125/warp-finance-recovers-5-8-million-days-after-hack"},{"credibility":2,"name":"Warp Finance Medium: Exploit Summary and Recovery of Funds","type":"official","url":"https://warpfinance.medium.com/warp-finance-exploit-summary-recovery-of-funds-5b8fe4a11898"},{"credibility":2,"name":"CryptoPotato: $7.7 Million Stolen in Flash Loan Attack from Warp Finance","type":"news_article","url":"https://cryptopotato.com/another-defi-hack-7-7-million-stolen-in-a-flash-loan-attack-from-warp-finance/"},{"credibility":2,"name":"Warp Finance Medium: Going offline March 13, 2024","type":"official","url":"https://warpfinance.medium.com/warp-finance-going-offline-on-the-13th-march-2024-5907a0171272"},{"credibility":2,"name":"MDPI: Flash Loan Attack Analysis Framework — Warp Finance Case Study","type":"research","url":"https://www.mdpi.com/2227-9709/10/1/3"}]},{"content":"","heading":"","severity":"high","sources":[{"credibility":2,"name":"Halborn: Explained: The ForceDAO Hack (April 2021)","type":"research","url":"https://halborn.com/explained-the-forcedao-hack-april-2021/"},{"credibility":2,"name":"Finance Magnates: ForceDAO Exploited for $367K after Launch Due to Engineering Oversight","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/news/forcedao-exploited-for-367k-after-launch-due-to-engineering-oversight/"},{"credibility":2,"name":"CryptoBriefing: Millions Drained in ForceDAO Attacks, White Hat Returns Funds","type":"news_article","url":"https://cryptobriefing.com/millions-drained-forcedao-attacks-white-hat-returns-funds/"}]},{"content":"","heading":"","severity":"critical","sources":[{"credibility":1,"name":"SEC.gov: SEC Charges Terraform and CEO Do Kwon with Defrauding Investors","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-32"},{"credibility":1,"name":"SEC.gov: SEC v. Terraform Labs and Do Hyeong Kwon (case page)","type":"court_filing","url":"https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/sec-v-terraform-labs-pte-ltd-do-hyeong-kwon-no-23-cv-1346-jsr-sdny"},{"credibility":1,"name":"Banking Dive: Terraform Labs, Do Kwon to settle with SEC for $4.47B","type":"news_article","url":"https://www.bankingdive.com/news/terraform-labs-do-kwon-to-settle-with-sec-for-447b/718867/"},{"credibility":2,"name":"CoinEdition: Terraform Labs Announces Shutdown of Enterprise, Warp, and Station","type":"news_article","url":"https://coinedition.com/terraform-labs-announces-shutdown-of-enterprise-warp-and-station/"},{"credibility":2,"name":"PR Newswire: Terraform Labs Launches Warp Protocol v2","type":"official","url":"https://www.prnewswire.com/news-releases/terraform-labs-launches-warp-protocol-v2-the-decentralized-automation-layer-for-cosmos-302067860.html"}]},{"content":"","heading":"","severity":"high","sources":[{"credibility":2,"name":"CoinTelegraph: Composable Finance CEO denies legal violations as CTO steps down","type":"news_article","url":"https://cointelegraph.com/news/composable-finance-ceo-denies-legal-violations-as-cto-steps-down"},{"credibility":2,"name":"Bitget Academy: Who Is Omar Zaki? Crypto, Blockchain & Next Gen NYC","type":"news_article","url":"https://www.bitget.com/academy/who-is-omar-zaki-crypto-next-gen-nyc-blockchain-profile"},{"credibility":2,"name":"Coinspeaker: Terraform Labs Warns of Potential Shutdown of Products and Services","type":"news_article","url":"https://www.coinspeaker.com/terraform-labs-potential-shutdown-products-services/"}]}],"sources_used":[{"credibility":2,"name":"ZachXBT tweet linking 0xbrainjar to Warp Finance and Force DAO","type":"social_media","url":"https://x.com/zachxbt/status/1494766351608598536"},{"credibility":2,"name":"CoinTelegraph: Exec at Composable Finance allegedly doxed as convicted fraudster Omar Zaki","type":"news_article","url":"https://cointelegraph.com/news/exec-at-composable-finance-allegedly-doxed-as-convicted-fraudster-omar-zaki"},{"credibility":2,"name":"0xbrainjar Medium: A letter to our community","type":"official","url":"https://0xbrainjar.medium.com/a-letter-to-our-community-6f71d4f3ca42"},{"credibility":1,"name":"SEC.gov: Unregistered Adviser Settles Hedge Fund Fraud Charges (33-10625-s)","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/administrative-proceedings/33-10625-s"},{"credibility":1,"name":"SEC Order PDF: In the Matter of Omar Zaki (33-10625.pdf)","type":"regulatory","url":"https://www.sec.gov/files/litigation/admin/2019/33-10625.pdf"},{"credibility":2,"name":"Yale Daily News: SEC charges Yale grad with fraud","type":"news_article","url":"https://yaledailynews.com/blog/2019/04/03/sec-charges-yale-grad-with-fraud/"},{"credibility":1,"name":"CBS News: Yale grad allegedly ran hedge fund scheme as a student","type":"news_article","url":"https://www.cbsnews.com/news/yale-grad-allegedly-ran-hedge-fund-scheme-as-a-student/"},{"credibility":1,"name":"CoinDesk: Warp Finance Suffers Possible $8M Flash Loan Attack","type":"news_article","url":"https://www.coindesk.com/markets/2020/12/18/warp-finance-suffers-possible-8m-flash-loan-attack"},{"credibility":2,"name":"SlowMist: Analysis of Warp Finance hacked incident","type":"research","url":"https://slowmist.medium.com/analysis-of-warp-finance-hacked-incident-cb12a1af74cc"},{"credibility":2,"name":"Decrypt: Warp Finance Recovers $5.8 Million Days After Hack","type":"news_article","url":"https://decrypt.co/52125/warp-finance-recovers-5-8-million-days-after-hack"},{"credibility":2,"name":"Warp Finance Medium: Exploit Summary and Recovery of Funds","type":"official","url":"https://warpfinance.medium.com/warp-finance-exploit-summary-recovery-of-funds-5b8fe4a11898"},{"credibility":2,"name":"Warp Finance Medium: Going offline March 13, 2024","type":"official","url":"https://warpfinance.medium.com/warp-finance-going-offline-on-the-13th-march-2024-5907a0171272"},{"credibility":2,"name":"Halborn: Explained: The ForceDAO Hack (April 2021)","type":"research","url":"https://halborn.com/explained-the-forcedao-hack-april-2021/"},{"credibility":2,"name":"Finance Magnates: ForceDAO Exploited for $367K","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/news/forcedao-exploited-for-367k-after-launch-due-to-engineering-oversight/"},{"credibility":1,"name":"SEC.gov: SEC Charges Terraform and CEO Do Kwon with Defrauding Investors","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-32"},{"credibility":1,"name":"SEC.gov: SEC v. Terraform Labs PTE Ltd. and Do Hyeong Kwon","type":"court_filing","url":"https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/sec-v-terraform-labs-pte-ltd-do-hyeong-kwon-no-23-cv-1346-jsr-sdny"},{"credibility":1,"name":"Banking Dive: Terraform Labs, Do Kwon to settle with SEC for $4.47B","type":"news_article","url":"https://www.bankingdive.com/news/terraform-labs-do-kwon-to-settle-with-sec-for-447b/718867/"},{"credibility":2,"name":"CoinEdition: Terraform Labs Announces Shutdown of Enterprise, Warp, and Station","type":"news_article","url":"https://coinedition.com/terraform-labs-announces-shutdown-of-enterprise-warp-and-station/"},{"credibility":2,"name":"Web3 Is Going Great: Another pseudonymous DeFi exec revealed to have a checkered past","type":"news_article","url":"https://www.web3isgoinggreat.com/?id=another-pseudonymous-defi-project-exec-revealed-to-have-a-checkered-past"},{"credibility":2,"name":"CoinTelegraph: Composable Finance CEO denies legal violations as CTO steps down","type":"news_article","url":"https://cointelegraph.com/news/composable-finance-ceo-denies-legal-violations-as-cto-steps-down"},{"credibility":2,"name":"MDPI: Flash Loan Attack Analysis Framework — Warp Finance Case Study","type":"research","url":"https://www.mdpi.com/2227-9709/10/1/3"}],"summary":"Warp Protocol refers to two distinct but both risk-flagged entities: (1) Terraform Labs' Cosmos-based on-chain automation protocol, shut down by December 2024 following the $40 billion Terra/Luna collapse and a $4.47 billion SEC settlement against Do Kwon and Terraform Labs; and (2) Warp Finance, an Ethereum DeFi lending protocol that suffered a $7.76 million flash loan exploit in December 2020, which ZachXBT linked to Omar Zaki, a Yale graduate who had previously settled SEC fraud charges for $25,000 in 2019 while operating an unregistered hedge fund. ZachXBT's February 2022 investigation alleged that Zaki operated both Warp Finance and Force DAO under the pseudonym '0xbrainjar' while concealing his SEC enforcement history from the Composable Finance community.","timeline":[{"date":"2016-01-01","event":"Omar Zaki forms unregistered investment adviser and hedge fund in New Haven, Connecticut, raising approximately $1.7 million from eleven investors.","source":"SEC Administrative Order (33-10625)","source_url":"https://www.sec.gov/enforcement-litigation/administrative-proceedings/33-10625-s"},{"date":"2019-04-01","event":"SEC issues administrative order against Omar Zaki for investor fraud, misleading investors about fund assets, performance, and management. Zaki settles for a $25,000 civil penalty and a three-year industry ban.","source":"SEC.gov Administrative Proceedings","source_url":"https://www.sec.gov/enforcement-litigation/administrative-proceedings/33-10625-s"},{"date":"2020-12-09","event":"Warp Finance launches as an Ethereum DeFi lending platform allowing users to deposit LP tokens as collateral for stablecoin loans.","source":"Finance Magnates","source_url":"https://www.financemagnates.com/cryptocurrency/news/newly-launched-warp-finance-lost-8-million-in-flash-loan-attack/"},{"date":"2020-12-17","event":"Warp Finance suffers a flash loan exploit via a manipulated LP token price oracle. Approximately $7.76 million in DAI and USDC is drained from the protocol.","source":"CoinDesk","source_url":"https://www.coindesk.com/markets/2020/12/18/warp-finance-suffers-possible-8m-flash-loan-attack"},{"date":"2020-12-22","event":"Warp Finance team recovers approximately $5.688 million (73%) of stolen funds in the form of ETH/DAI LP tokens with white-hat assistance. Portal IOU tokens issued to affected users.","source":"Decrypt","source_url":"https://decrypt.co/52125/warp-finance-recovers-5-8-million-days-after-hack"},{"date":"2021-04-04","event":"Force DAO, another protocol alleged to be linked to Omar Zaki, is exploited within hours of launch. Five attackers drain approximately $367,000 in FORCE tokens via an ERC-20 error-handling mismatch. FORCE token loses approximately 90% of its value.","source":"Halborn","source_url":"https://halborn.com/explained-the-forcedao-hack-april-2021/"},{"date":"2022-02-18","event":"ZachXBT publishes a thread allegedly doxxing Composable Finance's '0xbrainjar' as Omar Zaki, connecting him to the 2019 SEC settlement, Warp Finance, and Force DAO. Omar Zaki subsequently confirms his identity in a Medium post.","source":"ZachXBT on X","source_url":"https://x.com/zachxbt/status/1494766351608598536"},{"date":"2022-05-01","event":"TerraUSD (UST) depegs and the Terra/Luna ecosystem collapses, wiping out approximately $40 billion in market capitalization. Terraform Labs' Warp Protocol product is rendered part of a collapsing ecosystem.","source":"Do Kwon Wikipedia","source_url":"https://en.wikipedia.org/wiki/Do_Kwon"},{"date":"2023-02-16","event":"The SEC charges Terraform Labs and founder Do Hyeong Kwon with defrauding investors in multiple crypto asset securities offerings.","source":"SEC.gov Press Release","source_url":"https://www.sec.gov/newsroom/press-releases/2023-32"},{"date":"2024-02-21","event":"Terraform Labs launches Warp Protocol v2 as decentralized automation layer for the Cosmos ecosystem, despite ongoing SEC litigation and wind-down proceedings.","source":"PR Newswire","source_url":"https://www.prnewswire.com/news-releases/terraform-labs-launches-warp-protocol-v2-the-decentralized-automation-layer-for-cosmos-302067860.html"},{"date":"2024-03-13","event":"Warp Finance (the Ethereum DeFi protocol) shuts down its hosted frontend. Smart contracts remain accessible for direct interaction but are no longer actively maintained.","source":"Warp Finance Medium","source_url":"https://warpfinance.medium.com/warp-finance-going-offline-on-the-13th-march-2024-5907a0171272"},{"date":"2024-04-05","event":"A jury finds Do Kwon and Terraform Labs liable for investor fraud.","source":"DLA Piper","source_url":"https://www.dlapiper.com/en/insights/publications/2024/01/sec-secures-victory-against-terraform-labs-and-founder-do-kwon-key-takeaways"},{"date":"2024-06-12","event":"U.S. District Court approves final consent judgment against Terraform Labs and Do Kwon totaling $4,473,828,306 in disgorgement, prejudgment interest, and civil penalties.","source":"Banking Dive","source_url":"https://www.bankingdive.com/news/terraform-labs-do-kwon-to-settle-with-sec-for-447b/718867/"},{"date":"2024-09-25","event":"Terraform Labs announces potential shutdown of Warp Protocol, Enterprise DAO, and Station Wallet by October 30, 2024 unless third parties take over operations.","source":"CoinEdition","source_url":"https://coinedition.com/terraform-labs-announces-shutdown-of-enterprise-warp-and-station/"},{"date":"2024-12-31","event":"Terraform Labs' Warp Protocol formally shuts down as part of the broader Terraform Labs wind-down and bankruptcy process.","source":"CoinEdition","source_url":"https://coinedition.com/terraform-labs-announces-shutdown-of-enterprise-warp-and-station/"},{"date":"2025-12-01","event":"Do Kwon sentenced to 15 years in U.S. federal prison following extradition and guilty plea to fraud charges related to the Terra/Luna collapse.","source":"Do Kwon Wikipedia","source_url":"https://en.wikipedia.org/wiki/Do_Kwon"}]},"v":1}