Friend.tech Transfers Ownership to Improve Security and Compliance
The decentralized social app, Friend.tech, has successfully transferred the ownership of its smart contract and funds to a new combination of multisig and professional custody. This move was necessary to enhance security and comply with tax rules. The announcement was made by Friend.tech on X, confirming that the on-chain transactions for the transfer had been completed.
Funds Moved to Multisig Custody Solution After Scam Incident
Friend.tech’s decision to switch to a more secure multisig custody solution comes after a scammer stole approximately $400,000 in 24 hours through SIM-swapping attacks targeting Friend.tech users. The incident prompted the blockchain sleuth ZachXBT to reveal that the scammer had stolen 234 ETH from four different Friend.tech users.
Impressive Revenue Figures for Friend.tech
Since its launch on Coinbase’s Base blockchain in August, Friend.tech has generated revenues of over $25 million, according to data from DeFiLlama. The platform has also accumulated close to $52 million in user fees, which are derived from taxing 10% of the trading volume of social tokens.
A Platform for Trading Influencer Profile Tokens
Friend.tech is a platform that allows users to link their X accounts and facilitates the buying and selling of influencer profile tokens called “keys” using ETH on the Ethereum-based layer 2 network Base.
Hot Take: Friend.tech Prioritizes Security and Compliance
Friend.tech’s recent transfer of ownership demonstrates its commitment to improving security and complying with tax regulations. By implementing a more secure multisig custody solution, the platform aims to protect user funds and prevent future incidents like the SIM-swapping attacks. Additionally, Friend.tech’s impressive revenue figures highlight its success in the social token trading market. With its user-friendly interface and seamless integration with X accounts, Friend.tech continues to attract users and generate substantial revenues.
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