A trader operating under the pseudonym NN reportedly lost over one million dollars in cryptocurrency following an unapproved hard fork by the 0L Network. The trader, who also claims to be a part of 0L Network’s marketing team, disclosed the loss on May 8 via a post on X.
The hard fork, which was prompted by the actions of a “rogue core” member, led to the deletion of 4% of the total supply, including tokens bought nearly two years ago. The trader recounted purchasing 147 million Libra tokens in February 2023, valued at approximately $1.47 million.
According to NN, the 0L Network team had known about an intelligent contract bug for over two years but ignored it due to the token’s initially low value. When the tokens gained value, the team acted by forking out wallets believed to have exploited the bug, impacting innocent holders.
NN criticized the decision, stating that many affected users, including themselves, had purchased the tokens legitimately. The trader claimed the team failed to take responsibility for their mistake, resulting in unfair consequences for many buyers.
Allegations of Misconduct and Team Controversies
The hard fork stemmed from an intelligent contract loophole allowing insiders to unlock vested tokens prematurely by distributing them across multiple wallets. NN alleged that instead of resolving the issue, the team forked out wallets suspected of exploitation, fully aware that some innocent wallets would be affected.
The list of blacklisted wallets was reportedly generated internally, and NN’s wallet was targeted due to association with a single validator deemed rogue.
There are also allegations about the pseudonymous lead designer, 0D, potentially being Lucas Geiger, the founder of the OpenLibra project. Geiger has a history of legal issues with the United States 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 have reportedly been mistreated and removed from the 0L Network’s Discord group, adding to the controversy surrounding the network’s handling of the situation.
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