Crypto Trader Loses Over $1M Due to Controversial 0L Network Hard Fork
Summary:
A crypto trader known as NN has reported an unfortunate loss of over a million dollars due to the contentious hard fork of the 0L Network. According to NN, the team behind the network had knowledge of a smart contract bug for over two years but only chose to act when the tokens gained significant value. Despite implementing a new version (V7) of 0L Network, the bug still persists and hasn't been resolved, resulting in a significant loss for many traders, including NN. Rumours suggest the lead developer could be Lucas Geiger, previously charged by the SEC for fraudulent conduct.
A crypto trader, known only as NN, claims to have disastrously lost over a million dollars due to the contentious hard fork of 0L Network. In a blog post dated May 8, NN revealed that he acquired 147 million Libra (LIBRA) tokens back in February of 2023. These tokens, valued at roughly $1.47 million at the time of purchase, substantially decreased in worth following the hard fork, initiated by the @0LNetwork and objected by several community members.
This hard fork resulted from issues with a so-called "rogue core" member and led to the obliteration of 4% of the total supply, affecting numerous innocent people and their digital assets. CoinGecko data shows that the Libra token has seen a decline in value of more than 58% since May 3.
NN accused the team of knowing about the problem for over two years, with some insiders allegedly exploiting it. However, no action was taken due to the modest value of the Libra token. Only when the tokens began to accumulate value did the team decide to intervene, claims NN.
The team's motivation behind this hard fork lies in a smart contract bug facilitating insiders to expedite the unlocking of vested tokens. Despite the implementation of the new version, V7, of 0L Network, the issue still persists. Rather than resolving the issue, the team decided to remove all wallets they believed to have abused the loophole, affecting innocent parties as well.
NN has stated that the blacklist was created internally and, as a part of the marketing team, he was not privy to it. He further lists how his wallet, despite having tokens from six different validators, was deemed rogue and targeted in the fork.
Rumours are circulating the NN’s inside source may be Lucas Geiger, previously charged with fraudulent conduct by the United States Securities and Exchange Commission (SEC). Geiger is also linked to the Wireline project, which, despite raising $20 million in 2018, has not made any notable developments nor distributed its promised WRL ERC-20 tokens to its investors. In 2021, the SEC slapped a $650,000 fine on Wireline on charges of unregistered securities offering and alleged fraud.
Published At
5/8/2024 4:05:09 PM
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