1. Executive Summary

1.1 Vision and Purpose

The C42 Financial Intelligence Token (“C42” or “C42 Token”) is conceived as a cyber-financial & cybersecurity intelligence currency for a global, largely digital ecosystem focused on:

• Financial intelligence and cybercrime information, including crowd-sourced data;
• Whistleblower-driven reports and fraud alerts via Whistle42;
• Victim claims intake and recovery workflows via ClaimBack42;
• Risk ratings and red-flag mapping of service providers and payment rails;
• AML/CFT-relevant data flows for regulators, investigators and compliance teams.

C42 is issued as a utility token and used to:

• Reward whistleblowers, victims, analysts and contributors for actionable information;
• Enable information seekers (e.g. debt collection agencies, rating agencies, legal professionals, fund recovery entities, journalists) to access intelligence on a program basis;
• Pay for or unlock services within the C42 Ecosystem, such as ratings, listings, and selected tools.

A key design principle is that much of this ecosystem is purely digital: the “underlying asset” is structured, verified information. C42 is the program currency used to recognize and organize that information across multiple platforms.

1.2 Ecosystem Components

The C42 Token operates within a broader C42 Ecosystem, which includes:

• Whistle42 – the whistleblower platform and information hub where whistleblowers and victims can submit detailed tips (anonymous or account-based). Verified information feeds the entire ecosystem.
• ClaimBack42 – the claims registration and restitution initiative for scam and fraud victims. Structured claims form the basis for recovery workflows and, in some cases, monetization via separate security-token arrangements.
• C42Token.com – the utility-token information and program terms hub for C42.
• C42Securities.com – the separate, gated security-token layer (C42S) for monetized claims and investment participation, governed by MiFID II and prospectus-exemption rules (not covered in detail here).
• Media & rating partners – platforms such as FinTelegram, FinCrime Observer and RatEx42, which use structured intelligence from Whistle42 / ClaimBack42 to produce investigations, case reports and risk ratings.
• EFRI – European Funds Recovery Initiative – an independent NGO focusing on victim advocacy and fund recovery, using structured data from the C42 Ecosystem while remaining non-token based.

C42 is the utility layer connecting these components: it rewards verified intelligence, supports access to program tools and can be used in carefully defined discount and membership structures.

1.3 Token Nature

• Type: Utility token under MiCA (program / access / reward token).
• Blockchain: Hyperliquid Layer-1 (HyperEVM-compatible environment).
• Rights: Program access and recognition in the C42 Ecosystem; no ownership, no dividends, no redemption promise.
• Use: Rewards for accepted claims and verified whistleblower tips (where legally permissible), access to selected tools, and participation in program structures.

1.4 Reward Pool and Economic Model

A C42 Program Reward Pool (or “C42 Program Fund”) is established and funded by:

• A defined portion of primary token sale proceeds (FIAT and crypto);
• Revenue shares from C42 financial-intelligence activities (e.g. data products, fees, partner services);
• Optional allocations from related group business lines.

Funds in the Program Reward Pool may be used to:

• Reward contributors (whistleblowers, victims, analysts, raters) for verified, eligible actions;
• Support ecosystem tools and infrastructure;
• Conduct fully discretionary buy-backs of C42 on the market to manage liquidity and long-term alignment, subject to strict non-guarantee and no-backing language (see Section 5.3).

1.5 Key Risks

C42 Token holders face market, technology, regulatory, operational and governance risks; the token may become illiquid or worthless. See Section 8 for details.

2. Issuer and Governance

2.1 Issuer

The C42 Token is issued by:

FinTel Watchdog Ltd
(A group entity of CyberIntelligence Services Group PLC)
Registered Address: [Address, City, Country]
Company Number: [●]

The group operates a portfolio of platforms in the financial intelligence and cybercrime domain, including Whistle42, FinTelegram, PayRate42, ClaimBack42 and FinCrime Observer. Certain operational functions may be delegated to CyTel42 GmbH or other group entities (the “Program Operator”) under internal agreements.

2.2 Governance

The Issuer is governed by a Board of Directors responsible for:

• Strategy and oversight of the C42 project;
• Compliance with MiCA and relevant national laws;
• Oversight of the Program Reward Pool and key tokenomics decisions;
• Management of conflicts of interest between victim interests, whistleblower protection and ecosystem growth.

2.3 Financial Position

The C42 project is financed by primary token sale proceeds, revenue from C42 financial-intelligence activities and potential intra-group support. C42 holders have no claim on issuer equity, profits or assets.

3. C42 Token Description

3.1 Core Characteristics

• Name: C42 Financial Intelligence Token
• Symbol: C42
• Type: Utility token (MiCA)
• Blockchain: Hyperliquid Layer-1
• Standard: Hyperliquid token standard (ERC-20-like on HyperEVM)
• Decimals: [●]
• Contract address: [to be published]

3.2 Function and Use

The C42 Token is used to:

• Reward whistleblowers for verified, actionable tips submitted via Whistle42 (where legally permissible);
• Reward victims whose claims are accepted into the ClaimBack42 program;
• Recognize other ecosystem contributions (e.g. ratings, data support, research);
• Unlock or discount certain program features (dashboards, tools, premium access tiers);
• Serve as an internal, non-financial currency for information exchange and participation within the C42 Ecosystem.

3.3 No Financial Instrument Features

C42 does not:

• Represent shares, bonds, or other financial instruments;
• Provide any claim to issuer profits, the Program Reward Pool, or other assets;
• Carry a redemption right at fixed or formula-based value;
• Promise yield, interest, or guaranteed buy-backs.

Any market price of C42, if trading venues list the token, is purely a function of supply and demand and is not controlled or guaranteed by the issuer or program operator.

4. C42 Ecosphere and Use Cases

4.1 Whistle42 – Whistleblower Hub

Whistle42 is a dedicated whistleblower & tip-off platform focusing on:

• Investment fraud, online scam schemes, boiler rooms;
• High-risk brokers, crypto exchanges and payment processors;
• Cybercrime networks and cross-border fraud structures.

Whistleblowers can submit information anonymously or via a protected account. Verified, eligible contributions may be rewarded with C42 depending on legal, compliance and program criteria. Anonymity is always possible; C42 rewards are generally linked to account-based submissions to enable traceability and anti-fraud checks.

4.2 ClaimBack42 – Claims & Restitution Initiative

ClaimBack42 registers victims of scams and fraud, structures claims for potential recovery efforts and coordinates with NGOs, law firms and enforcement stakeholders. Accepted claims may lead to:

• Guidance on next steps and escalation options;
• Inclusion in group actions or mass harm cases;
• Eligibility for C42 rewards as a recognition of structured participation.

ClaimBack42 is not a law firm and does not guarantee recoveries; it is an intake, structuring and coordination layer.

4.3 PayRate42 – Cyber Rating Agency

PayRate42 lists and rates financial and crypto service providers, combining structured risk factors with user feedback. C42 may be used to:

• Pay listing or review fees (directly or via conversion);
• Reward high-quality, well-evidenced user reports and ratings.

4.4 EFRI – European Funds Recovery Initiative

EFRI is an independent NGO focused on victim advocacy and fund recovery. Within the C42 Ecosystem:

• EFRI may use structured data and case materials prepared via Whistle42 and ClaimBack42;
• EFRI may be remunerated in traditional currency (EUR) for case preparation, policy work and victim communication;
• EFRI does not issue or distribute tokens and remains non-token-based and independent.

4.5 Information Seekers & Professional Users

Information seekers (e.g. law firms, regulators, compliance teams, investigative journalists) may, where permitted, use ecosystem channels to request structured intelligence. C42 can be used within the program to recognize and organize responses, without bypassing legal or ethical review.

4.6 Whistle42 & Media Partners (FinTelegram, FinCrime Observer, RatEx42)

Structured intelligence from Whistle42 and ClaimBack42 is used by media and analysis platforms such as FinTelegram, FinCrime Observer and RatEx42 to produce investigations, case updates and risk ratings. In this context:

• C42 may be used as a program reward for whistleblowers whose information materially supports published work;
• Editorial decisions (what to investigate or publish) remain independent from token allocations;
• C42 functions as an internal “information currency” – it does not purchase coverage and does not override journalistic standards or legal constraints.

This separation is important for regulatory and ethical reasons: C42 rewards recognition & access, while the content and conclusions of media reporting remain under editorial control.

5. Tokenomics and Economic Model

5.1 Total Supply and Allocation (Illustrative Template)

The figures above are illustrative templates and may be updated prior to filing.

5.2 Reward Pool

The Reward Pool is funded by:

• a defined share of FIAT and crypto proceeds from token sales;
• revenue contributions from PayRate42, ClaimBack42, EFRI, and other C42 business lines;
• possible future integrations (e.g. licensing, API access, data services).

The Reward Pool is used for rewards to whistleblowers, victims, analysts, raters, and community contributors, and can also be used to finance discretionary buy-backs via the Program Fund.

5.3 Program Fund & Discretionary Buy-Back Mechanism

5.3.1 Purpose of the Program Fund

CyTel42 may allocate a portion of operational revenues to a dedicated Program Fund wallet. The Program Fund supports:

• ecosystem development and maintenance;
• operational stability and strategic initiatives;
• fully discretionary buy-backs of C42 utility tokens on the open market.

The Program Fund is an operational tool only. It does not constitute a reserve, backing, or redemption pool for C42.

5.3.2 Nature of Buy-Backs

Any buy-back of C42 using Program Fund assets is:

• fully discretionary – there is no obligation, schedule, or guarantee;
• non-binding – no contractual commitment exists towards token holders;
• non-formulaic – there is no fixed formula or buy-back price;
• non-redeemable – token holders cannot redeem C42 against the Program Fund.

CyTel42 may internally consider indicators (such as Program Fund balance and circulating supply) when deciding whether to execute buy-backs. These internal indicators do not represent intrinsic value, a floor price, or a redemption basis.

5.3.3 Regulatory Position under MiCA

The Program Fund is expressly designed so that:

• C42 is not backed or stabilized by the Program Fund;
• C42 does not grant redemption rights against the Program Fund;
• C42 does not qualify as an Asset-Referenced Token (ART) or e-Money Token (EMT) under MiCA;
• C42 remains categorized as a utility token providing access and use rights within the C42 ecosphere.

5.3.4 No Rights for Token Holders

Holders of C42 Tokens:

• have no claim to the Program Fund balance;
• cannot redeem C42 for assets held in the Program Fund;
• have no entitlement to buy-backs or distributions;
• do not receive any profit or revenue share from the Program Fund.

5.3.5 Transparency Measures

CyTel42 may publish Program Fund activity reports, which can include:

• Program Fund wallet balances;
• summary of historical buy-back operations;
• SHA-256-verifiable documents and versioned disclosures.

These reports are provided solely for transparency. They do not constitute financial forecasts or legally binding commitments.

5.4 Revenue Streams Feeding the Ecosystem (Example)

Revenue streams that may support the Reward Pool and Program Fund include:

• token sale proceeds;
• PayRate42 listing and service fees;
• information access and query fees;
• EFRI recovery-related compensation;
• advertising and promotional revenues;
• other C42 financial intelligence products.

6. Public Offering Overview

C42 is offered as a utility token for access and payment purposes within the C42 ecosphere. Final offering parameters (offering period, price, allocation limits, and jurisdictional scope) will be specified in the applicable offering documentation and in accordance with MiCA and national rules.

Jurisdictional restrictions and exclusions may apply (including sanctions restrictions and potential exclusion of certain markets or investor categories).

7. Technology – Hyperliquid and Smart Contracts

C42 is issued on the Hyperliquid Layer-1 blockchain. The smart contracts governing issuance and transfer of C42 will be subject to independent security review prior to launch, with attention to:

• contract correctness and security;
• upgrade policies and admin controls;
• key management and multisig or role-separated administration.

8. Risk Factors

Holding C42 Tokens involves substantial risk. Prospective participants should carefully consider, among others, the following non-exhaustive risk categories:

• Market risk: C42 may be volatile or illiquid; market price may fall to zero.
• Regulatory risk: Future MiCA guidance or national rules may impose new constraints or obligations.
• Technology risk: Bugs, exploits, or failures in blockchain or smart contracts can cause loss or disruption.
• Business risk: One or more ecosystem platforms or revenue sources may fail or underperform.
• Operational and governance risk: Implementation errors, misaligned incentives, or concentration of control in early phases.

Participants should not acquire C42 Tokens with funds they cannot afford to lose and should seek independent legal, tax, and financial advice.

9. Legal Position under MiCA

The issuer considers C42 to be a utility token that provides access to financial intelligence and related services within a defined ecosystem. C42 is not a security, not e-money, and not an asset-referenced token (ART) or e-money token (EMT) under MiCA.

C42 is not marketed as an investment and does not promise any economic return. Participation in the C42 ecosphere is voluntary and at the participant’s own risk.

10. Sustainability

The C42 project favors energy-efficient infrastructure and digital processes over resource-intensive legacy workflows, such as paper-based investigations or extensive physical travel. Hyperliquid’s consensus mechanism is more energy-efficient than traditional proof-of-work systems.

11. Versioning, Terms, and Contact

This whitepaper is versioned (current version: v2.1). Future changes will be documented and may be accompanied by SHA-256 hash values for integrity verification. The C42 Token Terms and Program Terms govern eligibility, misuse, clawback rules, jurisdictional restrictions, and dispute processes.

Contact for regulators and authorities:
legal@•••