Crypto Trader Loses $1M in 0L Network Hard Fork Fallout

by

As a crypto investor who has gone through my fair share of ups and downs in the market, I can’t help but feel deeply disappointed and frustrated by the recent turn of events with 0L Network and their hard fork. I’ve been following this project closely for quite some time now, even joining their marketing team, believing in its potential.

I, as an analyst, have come across a report where a trader using the alias NN is said to have suffered significant losses amounting to over one million dollars due to an unexpected hard fork in the 0L Network’s cryptocurrency. This trader, who is also part of the network’s marketing team, publicly disclosed this information on May 8 through a post on X.

As a researcher studying the recent events in the Libra blockchain, I can describe it this way: A hard fork ensued due to the defiant actions of an influential member within our community, referred to as a “rogue core” participant. Consequently, about 4% of the entire token supply was eliminated from circulation. Among the affected tokens were my own 147 million Libra units, which I had acquired back in February 2023 for approximately $1.47 million.

As an analyst, I was significantly impacted when @0LNetwork (the team behind $LIBRA) chose to implement a hard fork due to the actions of a “rogue core” member. Consequently, over 4% of the total supply was eliminated, unintentionally affecting innocent users and their digital wallets, including mine which held tokens worth seven figures.

— NN 🌸🐧 (@nn_blossoms) May 8, 2024

NN reports that the 0L Network team, led by NN, had been aware of a flaw in an intelligent contract under their jurisdiction for more than two years. Due to the insignificant value of the associated tokens during that period, they chose not to address the issue. However, once the tokens’ worth increased, the team took action against wallets assumed to have exploited the bug. Unfortunately, this response inadvertently affected innocent token holders.

I, along with many other legitimate token purchasers, have expressed criticism towards the decision made by NN. The consequences of this decision have resulted in unfavorable outcomes for us buyers. Unfortunately, the team responsible for the tokens has yet to acknowledge their mistake and take responsibility, leaving us feeling unfairly affected.

Allegations of Misconduct and Team Controversies

The hard fork arose due to a clever contract flaw that enabled insiders to unrightfully access vested tokens before their set release date by transferring them among various wallets. Rather than addressing this problem, the team reportedly split off suspicious wallets, knowing that some blameless wallets would be unintentionally impacted in the process.

It has been claimed that the internal team created the list of blocked digital wallets, including NN’s, as a result of NN being linked to a controversial validator labeled as malicious.

As a crypto investor, I’ve come across rumors suggesting that the anonymous lead designer of a project, referred to as 0D, could be none other than Lucas Geiger, the founder of OpenLibra. This is significant because Geiger has a past record with regulatory bodies in the US, particularly the Securities and Exchange Commission (SEC). In 2021, he was penalized with a fine of $650,000 due to an unregistered securities offering and allegations of fraud involving Wireline Developer Fund.

Some traders, including NN and others, have allegedly been mishandled and expelled from the Discord community of the 0L Network, fueling further debate about how the network has managed this situation.

Read Also: Solana Memecoin Trader Earns $23 Million Profits: Here’s How

Read More

2024-05-08 18:45