Trader loses over $1m due to 0L Network hard fork

As an experienced financial analyst, I cannot help but feel a deep sense of empathy for NN’s unfortunate experience. The loss of over seven figures worth of cryptocurrency due to a hard fork in the 0L network is a devastating blow that no trader or investor ever wants to face.

As a researcher studying financial markets, I’d express it this way: I came across an unfortunate incident where a trader suffered significant losses exceeding one million dollars due to the occurrence of a hard fork in the 0L cryptocurrency network.

A unfortunate trader named NN expressed his disappointment on social media platform X about losing investments due to the recent change in the 0L network. He voiced his displeasure towards the community, stating that they were not in favor of the hard fork that occurred.

I was significantly affected financially by the @0LNetwork team, to the tune of seven figures.

In summary: The @0LNetwork ( $LIBRA ) team initiated a hard fork due to a “rebel core” member. This action led to the elimination of 4% of the total supply and unintentionally destroyed wallets, including those containing tokens.

β€” NN 🌸🐧 (@nn_blossoms) May 8, 2024

The 0L Network was established with the goal of recognizing and compensating developers and other active contributors for their involvement in building the project.

“The group managing @0LNetwork ( $LIBRA) chose to implement a contentious update due to a disruptive team member. Consequently, this modification eliminated approximately 4% of the existing supply, unintentionally affecting and damaging some users’ wallets, including those holding tokens since nearly two years ago.”

NN, anonymus trader

I analyzed the transaction records and discovered that in February 2023, I acquired around 147 million Libra tokens, which were valued at roughly $1.47 million at the time. Subsequently, I joined the protocol to contribute to its marketing initiatives.

The trader asserts that the team has known about the bug in their system for more than two years, during which some individuals took advantage of it. Nevertheless, the team chose to disregard the issue because they deemed the Libra token’s worth insufficient to warrant attention and correction.

A hard fork occurred due to a defect in the smart contract code that enabled select individuals to prematurely release tokens by distributing them among various wallets. Yet, based on information from an anonymous trader, this vulnerability reportedly persists in version 0L Network, the latest update being v7.

The team chose to reimburse instead of addressing the vulnerability in question, distributing compensation to the wallets they suspected had exploited it. NN acknowledged that unintended, blameless wallets might also be affected due to the difficulty of distinguishing between malicious and innocent parties during this process.

Although NN had obtained tokens from six legitimate validators, a seventh, identified as fraudulent by the team, drained NN’s wallet.

Despite purchasing tokens from six distinct validators, unfortunately, the entirety of my token wallet will be seized due to one of these validators being identified as malicious or untrustworthy.

NN, anonymus trader

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2024-05-08 19:36