DeepNode Foundation

Investigation Update The DeepNode Foundation has reason to believe that a party representing itself to be a liquidity provider (herein " Liquidity Provider"), in violation of their contract, began algorithmically dumping $DN tokens almost immediately after TGE, resulting in the liquidity incident first highlighted on Jan 14th, 2026. This resulted in mandatory Security Deposits provided to CEXes as part of the token listing process being depleted and lost. These represented a significant portion of all capital raised by DeepNode Foundation. The DeepNode Foundation has since: - Engaged experienced Web3 counsel, - Is cooperating with law enforcement, and - Engaged former U.S. Federal and Intelligence Officers to assist in the restitution efforts against those associated with the “Liquidity Provider”. Emergency Liquidity Restoration As part of the DeepNode Foundation's efforts to restore market stability and operational continuity, it has acquired over 100% of the amount of tokens initially provided as collateral to the “Liquidity Provider”. This was funded through existing DeepNode Foundation resources. Moving Forward To ensure long-term viability, the DeepNode Foundation will be temporarily scaling back non-essential spend. Marketing, social activity, and business development will take a back seat as we focus on shipping the platform and delivering core utility. Launch is not the finish line, it is the beginning of operational resilience. Our priorities remain clear: accountability and restitution efforts, disciplined execution, and shipping the core product. We appreciate the continued support from those who have stood with DeepNode through this period. We will continue to share further updates as material developments occur. Please Note: While we are aware that some sources have published the alleged identity of the “Liquidity Provider”, the DeepNode Foundation cannot risk impeding law enforcement or restitution efforts by commenting further at this time.

Over 2.5M $DN is now staked! This level of participation highlights growing alignment and long term commitment across the ecosystem. With XP rewards now live, all active staking positions continue to accrue value over time. Dune dashboard in the post below 👇🏼

Exchange Update We want to share an update regarding Bitget. Following the post‑TGE incident, our team fully intended to meet all of Bitget's requirements, including deploying additional liquidity and supporting healthy market depth. We made repeated efforts to align on a workable path forward with the exchange. We were not able to satisfy the requirements and Bitget has communicated their decision to delist DN. We appreciate Bitget’s time and engagement throughout the process, and we remain open to re‑exploring a partnership once recovery efforts are further along. We’re grateful for the support and understanding shown by our other exchange partners during this process, and we will continue to fully support all remaining trading venues. In parallel, we are working constantly toward recovery and rebuilding with the long term health of the project as our priority. Thank you all for your continued support.

Treasure Chests are live, go claim your pre-TGE reward!

To the DeepNode community, Today's update continues our commitment to transparency, providing additional information on what has happened and the recovery plan moving forward. Backstory: - To ensure sufficient liquidity on Exchanges at launch, the DeepNode Foundation borrowed $ X mil USDT (at interest) from a Liquidity Provider, which was over-collateralised with Y% of DN's supply. - Those borrowed funds (in addition to other capital we contributed) were then provided to our Market Makers, along with a corresponding amount of DN tokens. - The collateral was held by a recognised third party trading firm. - This is the way things work with new projects. Teams must provide liquidity (stables and tokens) to Exchanges (via Market Makers) during a token launch if they are to be listed. What Happened: - The Liquidity Provider (bad guys) took our collateral (the DN tokens) and dumped them. They violated our contract, broke our trust, and we have the evidence to prove it. - Fearing an exploit/hack, our Market Makers (good guys) acted quickly and pulled liquidity from Exchanges until they could figure out what happened. - Between the good guys pulling liquidity and the bad guys relentlessly dumping into the void, price fell off a cliff. - Where things get strange is that the collateral was being custodied by a third party (a large and well known trading firm). We do not know why the Custodian  executed the instructions from the Liquidity Provider and are actively investigating the matter. Bad Guys Update: - Multiple sources have confirmed that the bad guys are out of tokens. - We are negotiating a settlement agreement with the bad guys for a return of funds (people become surprisingly communicative once exchanges start freezing assets). - Any funds that we get back from the bad guys will be used to provide market liquidity, tokens from these purchases will be permanently burned. Good Guys Update: - Market Makers, Exchanges and other partners are all aware of the situation, and want to help us right the ship. - The biggest reason that our Market Makers are able to help us rebuild is because they acted so quickly to pull liquidity when things hit the fan. What Next: - We are in the process of restoring liquidity and working with our partners to stabilize the market. - The process will be gradual, involving ongoing capital commitments from both the Foundation and several of our partners. - There are ongoing legal aspects to this situation, so while we do know who the bad guy is, and who the Custodian is, we are not able to share that information publicly at this time. In Closing: - To those that have continued to support us and show us grace through this difficult process, we thank you from the bottom of our hearts. - To those that are hurting right now, know that we are hurting right beside you. - We ask for your patience and understanding while our team and our partners are doing everything possible to try and make this right. We will continue to provide regular updates as we progress. Thank you, The DeepNode Foundation

DeepNode Incident Update: Following our earlier announcement, we have conducted an extensive audit regarding the extreme volatility that occurred within the past 24 hours. As part of our coordinated launch, DeepNode engaged a well respected funding partner to provide the initial liquidity needed for healthy market operations during the intense trading volumes following our TGE. Per industry norms, collateral ($DN tokens) were held by our liquidity lending counterparty, which were not to be touched, and were to be returned to the DeepNode Foundation in full at the end of the liquidity lending term. Based on our investigation, it is our belief that this liquidity partner breached the terms of this agreement regarding this collateral. We do not make these allegations lightly, and are working with legal, law enforcement, and Centralized Exchanges to recover assets and protect the interests of all $DN holders. While this is ongoing, the DeepNode Team are also actively working with Market Makers to stabilise markets and improve liquidity on all fronts. We hear you, we know people are hurting, we are working tirelessly to fix this, and we are not going anywhere. Our commitment to the project and our community remains unwavering, and we're focused on ensuring this doesn't impact our long-term vision. We'll keep you updated as we progress toward a resolution. Thank you for your patience and continued support.

$DN is the core of DeepNode, tying all participating elements together and making sure the ecosystem is fair, transparent and community-powered. Our token can be used to: - Stake and receive yield - Reward platform contributors - Get access to different AI models - Vote on governance decisions TGE is coming on January 9th. $DN will start a new AI revolution.

AI is too important to be owned by any single entity. As intelligent systems grow more powerful, the structure around them matters just as much as the technology. Without neutral stewardship, innovation risks drifting toward opacity, concentration, and misalignment. At the DeepNode Foundation we firmly believe that AI needs neutral ground. Our mission is to support an open, transparent ecosystem where AI can evolve responsibly, with accountability and fairness built in. Here’s to the era of open intelligence.

2026 is going to be THE year. $DN will come to light in January.