In a significant setback, a trader incurred losses exceeding $1 million as a result of a hard fork of the 0L network, sparking outrage within the cryptocurrency community.
The unfortunate incident was brought to light by a trader identified as NN, who took to the social media platform X to express frustration over the loss of assets due to the network’s hard fork. NN lamented that the community did not sanction the hard fork initiated by the 0L Network.
Originally established to reward developers and community members actively engaged in project development, the 0L Network faced turmoil when a hard fork was instigated by its creators. NN revealed that the hard fork, purportedly triggered by a “rogue core” member, led to the elimination of 4% of the total supply, resulting in the loss of assets for innocent holders, including tokens acquired nearly two years ago.
NN disclosed purchasing 147 million Libra tokens in February 2023, valued at approximately $1.47 million at the time, before becoming involved in marketing efforts for the protocol. The trader asserted that the network’s team had been aware of a bug for over two years, with some insiders allegedly exploiting it. Despite this, the team chose to disregard the issue due to the perceived insignificance of the Libra token’s value.
The hard fork was necessitated by a flaw in the smart contract, enabling insiders to expedite token unlocking by dispersing them across multiple wallets. However, instead of rectifying the loophole, the team opted to fork out all wallets suspected of exploiting it. NN criticized the decision, highlighting that innocent wallets were inevitably impacted, given the challenge of accurately tracing all tokens.
Despite purchasing tokens from six different validators, NN’s entire wallet, containing all acquired tokens, fell victim to the hard fork initiated by one validator deemed fraudulent by the team. This development underscores the broader implications of decentralized networks and the challenges associated with maintaining integrity and fairness within the ecosystem.
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