Trader lost 7-figure sum due to 0L Network hard fork

One unlucky trader lost over a million dollars worth of cryptocurrency due to the 0L network hard fork.

Anonymous trader NN lost his money due to an unauthorized hard fork by the community, according to the May 8 X Post.

The team behind @0LNetwork ($LIBRA) has decided to fork due to a ‘rogue core' member. This fork resulted in the loss of 4% of the total supply, as well as burning the wallets of innocent people, including tokens purchased nearly 2 years ago.

An anonymous trader said he bought 147 million Libra tokens worth an estimated $1.47 million in February 2023 before joining the protocol to aid marketing efforts.

According to CoinGecko data, the price of Libra has fallen to over $0.001 since May 3rd at 12:35 pm UTC.

According to NN, the group had known about the bug for more than two years, and some insiders were abusing it. However, the group decided to ignore the issue due to the lack of value of the Libra token. The merchant wrote:

“The group allowed this ‘trick' to continue for over 2 years. Only now, when the tokens have reached a high value, they decide to act. Meanwhile, many buyers, including myself, have actually purchased OTC tokens and are now suffering the consequences of unfair behavior by a group that has not taken responsibility for their losses.

A hard fork is the result of a smart contract bug that allowed insiders to spread it across multiple wallets and open it quickly. However, the hole still exists in the latest version of 0L Network, v7, according to an anonymous trader.

Instead of fixing the hole, the team decided to rip off all the wallets they thought had used the hole. NN said that the group is “fully aware that innocent wallets will be affected” because it is impossible to trace all traces. NN wrote:

“The blacklist was created internally, as a member of the marketing team, I couldn't see the fork list. The list was created by an algorithm developed by Hemulin (0D right hand), who ironically used the hole in the past.

Despite purchasing tokens from six different validators, NN's wallet was hacked due to a single validator that the team suspected was fraudulent. According to the businessman, other victims were also abused and kicked out of the Discord group.

Related: How Binance Played a Key Role in Arresting ZKasino Fraud Suspect

Has the anonymous lead designer of the 0L network been sued by the SEC before?

While the identity of the fake lead developer of the 0D, 0L Network has not been revealed, multiple sources have told NN that it could be OpenLibra project founder Lucas Giger. Geiger was previously charged with fraudulent conduct by the United States Securities and Exchange Commission.

Geiger is the founder of Wireline, which raised $20 million in March 2018 for a decentralized peer-to-peer developer and trading network. Despite the increase, no network has been built and the promised WRL ERC-20 tokens have yet to be distributed to investors.

In January 2021, the SEC fined Wireline $650,000 for unregistered securities offerings and fraud against the company's Cayman Islands subsidiary, Wireline Developer Fund.

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