An unfortunate trader reportedly suffered a loss of more than a million dollars worth of cryptocurrency due to the 0L Network hard fork. According to an X post on May 8, the trader, known as NN, experienced this loss as a result of an unapproved hard fork by the community.
NN revealed that back in February 2023, they had purchased 147 million Libra tokens, valued at around $1.47 million at the time. They had joined the protocol to help with marketing efforts. However, the value of Libra has dropped by over 58% since May 3, currently trading above $0.001, according to CoinGecko data.
The trader claimed that the team had been aware of a bug for more than two years, which some insiders had exploited. However, due to the perceived lack of value in the Libra token, the team chose to ignore the issue. NN stated, “The team knew about the bug for years and allowed insiders to exploit it. The Libra token had no value, so they ignored the issue.”
The hard fork was a result of a smart contract bug that allowed insiders to unlock vested tokens faster by distributing them across multiple wallets. Surprisingly, the loophole still exists in the latest version of the 0L Network, v7, according to NN.
Instead of fixing the loophole, the team decided to fork out all wallets believed to have taken advantage of the bug. NN claimed that innocent wallets were affected because it was impossible to trace back all the tokens. NN further explained, “The team knew that innocent wallets would be affected, but they still went ahead with the fork.”
NN’s wallet was forked out even though they had purchased tokens from six different validators. This occurred because the team considered one of the validators to be rogue. Other victims have also experienced mistreatment and have been expelled from the Discord group, according to NN.
It is worth noting that the identity of 0D, the pseudonymous lead developer of 0L Network, remains unknown. However, multiple validators have suggested that 0D could be Lucas Geiger, the founder of the OpenLibra project. Geiger has previously faced charges of fraudulent behavior by the United States Securities and Exchange Commission.
Geiger is also the co-founder of Wireline, which raised $20 million in March 2018 for a decentralized peer-to-peer developer and business network. Despite the successful fundraising, no network was developed, and the promised WRL ERC-20 tokens have yet to be distributed to investors. In January 2021, Wireline was fined $650,000 by the SEC for an unregistered securities offering and alleged fraud involving Wireline Developer Fund, its subsidiary based in the Cayman Islands.
According to a report, Solana could surpass Ethereum in terms of transaction fees within a week.