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Cryptocurrency trader loses $1 million due to 0L network hard fork fallout
A trader operating under the pseudonym NN reportedly lost over a million dollars in cryptocurrency following an unapproved hard fork by the 0L network. The trader, who also claims to be part of 0L Network’s marketing team, revealed the loss on May 8 via a post on X.
The hard fork, triggered by the actions of a “rogue core” member, led to the cancellation of 4% of the total supply, including tokens purchased almost two years ago. The trader said he purchased 147 million Libra tokens in February 2023, worth approximately $1.47 million.
1/ How deeply I got hard @0LNetwork – 7-digit $ value.
TLDR: The team behind it @0LNetwork ( $LIBRA ) decided to hard fork due to a “rogue core” member. This fork resulted in the destruction of 4% of the total supply, also burning innocent people’s wallets, including tokens… pic.twitter.com/UdtUBJHO83
— NN 🌸🐧 (@nn_blossoms) May 8, 2024
According to NN, the 0L Network team had been aware of a smart contract bug for over two years, but had ignored it due to the initially low value of the token. As the tokens gained value, the team took action by disbursing wallets believed to have exploited the bug, affecting innocent holders.
NN criticized the decision, saying that many affected users, including themselves, had purchased the tokens legitimately. The merchant said the team did not take responsibility for their mistake, resulting in unfair consequences for many shoppers.
Allegations of misconduct and team disputes
The hard fork results from a clever contractual loophole that allows insiders to prematurely unlock acquired tokens by spreading them across multiple wallets. NN said that instead of fixing the problem, the team took wallets suspected of exploitation, fully aware that some innocent wallets would be affected.
The list of blacklisted wallets was reportedly internally generated, and NN’s wallet was targeted due to association with a single validator believed to be rogue.
There are also allegations that the pseudonymous lead designer, 0D, may be Lucas Geiger, the founder of the OpenLibra project. Geiger has a history of legal trouble with the U.S. Securities and Exchange Commission, including a $650,000 fine in 2021 for an unregistered securities offering and alleged fraud involving Wireline Developer Fund.
NN and other affected traders were reportedly mistreated and removed from the 0L network’s Discord group, adding to the controversy over the network’s handling of the situation.
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