A trader lost over a million dollars’ worth of cryptocurrency due to a hard fork of the 0L network. The trader, named NN, took to social media platform X to discuss the loss of assets due to this change, mentioning that the community did not approve of the 0L network’s hard fork.
The 0L Network was established to reward developers and other community members who actively participate in project construction.
“The team behind @0LNetwork ( $LIBRA ) decided to hard fork because of a “rogue core” member. This fork resulted in a wipe out of 4% of the total supply, also burning innocent people’s wallets, including tokens purchased almost 2 years ago.”
~ NN, anonymus trader
NN purchased 147 million Libra tokens in February 2023, worth approximately $1.47 million at the time, before joining the protocol to assist with marketing efforts.
The trader claims that the team has been aware of the bug for over two years, and some insiders have exploited it. However, the team chose to disregard the issue due to the insufficient value of the Libra token.
A smart contract bug led to a hard fork that allowed insiders to unlock tokens faster by distributing them across multiple wallets. Despite this, a pseudonymous trader revealed that the loophole still exists in the latest version of 0L Network, v7.
Rather than fixing the loophole, the team opted to fork out all wallets suspected of exploiting it. This decision, according to NN, resulted in innocent wallets being affected, as it was impossible to trace all tokens.
“I bought tokens from 6 different validators, yet my entire wallet, containing all my tokens, is being forked out because one of the validators was considered rogue.”
~ NN, anonymus trader
Despite purchasing tokens from six different validators, NN’s wallet suffered significant losses due to one validator being labeled as fraudulent by the team.
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