As an experienced financial analyst, I find the situation surrounding the 0L Network hard fork and the alleged loss of over a million dollars by trader NN quite concerning. The lack of transparency and communication from the team behind 0L Network regarding the bug and its subsequent handling is troubling.
Approximately $1 million or more in cryptocurrency is believed to have been lost by an unlucky trader as a result of the 0L Network’s hard fork.
According to a May 8 post on the X forum, pseudonymous trader NN incurred these losses due to the unapproved hard fork that took place.
“The team behind @0LNetwork ($LIBRA) decided to hard fork because of a “rogue core” member. This fork resulted in a wipeout of 4% of the total supply, also burning innocent people’s wallets, including tokens purchased almost 2 years ago.”
A pseudonymous trader revealed that they bought around 147 million Libra (LIBRA) tokens back in February 2023, which amounted to roughly $1.47 million at the time of transaction, prior to joining the protocol to contribute to its marketing initiatives.
Since May 3, the value of the Libra token has decreased by more than 58 percent, and it is currently trading at a price above $0.001, based on information from CoinGecko at 12:35 p.m. in UTC.
NN reported that the team had known about the bug for more than two years and some members had taken advantage of it during this time. Nevertheless, they chose to disregard the problem as the Libra token held no significant worth at the time.
“The team allowed this ‘malicious’ act to persist for over 2 years. Only now, when the tokens gained significant value, did they decide to act. Meanwhile, many buyers, including myself, purchased OTC tokens fairly and are now suffering the consequences of unjust behavior by a team that did not take responsibility for their fault.”
As a crypto investor, I’ve come to understand that the recent hard fork in the 0L Network was due to a smart contract glitch allowing insiders to prematurely access vested tokens by distributing them among various wallets. Unfortunately, this loophole persists in the latest version, or V7 of the network, as reported by an anonymous trader.
The team chose not to mend the vulnerability but instead compensated all identified wallets, acknowledging that some innocently involved wallets would suffer consequences due to the untraceable nature of the implicated tokens. (NN asserted that the team knew this.)
“The blacklist was made internally, as a marketing team member, I couldn’t see the fork list. The list was generated by an algorithm designed by one of their own, Hemulin (0D’s right hand), who ironically had also exploited the loophole in the past.”
Although NN had purchased tokens from six legitimate validators, their wallet was drained due to one untrustworthy validator identified as such by the team. Other affected individuals have reportedly faced similar injustices and were expelled from the Discord community, as disclosed by the trader.
The pseudonymous lead designer of 0L Network previously charged by the SEC?
As a researcher delving into the world of 0D, 0L Network, I’ve come across an intriguing piece of information. Although the true identity of their pseudonymous lead developer remains elusive, I’ve managed to gather some intel from reliable sources – validators in this case. They’ve hinted that this individual might be none other than Lucas Geiger, the founder of OpenLibra project. It’s important to note that Lucas has previously been under scrutiny by the United States Securities and Exchange Commission (SEC) for alleged fraudulent activities.
As a researcher, I’ve come across Geiger’s involvement in the founding of the Wireline project, which secured a $20 million investment in March 2018 for creating a decentralized peer-to-peer network connecting developers and businesses. However, despite this substantial funding, no such network has been established yet, and the promised WRL ERC-20 tokens have yet to be distributed to investors.
In the opening month of 2021, the Securities and Exchange Commission (SEC) imposed a penalty of $650,000 on Wireline for conducting an unregistered securities offering and suspected fraud linked to Wireline Developer Fund, a subordinate company based in the Cayman Islands.
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2024-05-08 16:12