A trader, known as NN, reportedly suffered a significant loss of more than one million dollars in cryptocurrency due to the 0L Network hard fork, as stated in a post on May 8. NN revealed that they had purchased 147 million Libra tokens in February 2023, which were valued at around $1.47 million at the time. They joined the protocol to assist with marketing efforts. However, the value of Libra has plummeted by over 58% since May 3, currently trading above $0.001, according to CoinGecko data.
NN claimed that the team behind the project was already aware of the bug that led to the hard fork for over two years, and certain insiders took advantage of it. However, the team decided to ignore the issue due to the low value of the Libra token. The hard fork occurred because of a smart contract bug that enabled insiders to unlock vested tokens faster by distributing them across multiple wallets. Surprisingly, this loophole still exists in the latest version of 0L Network, v7, as confirmed by NN.
Instead of addressing the loophole, the team opted to fork out all the wallets they believed had exploited it. Unfortunately, innocent wallets were also affected, as it was impossible to trace back all the tokens. NN expressed their disappointment, stating that despite purchasing tokens from six different validators, their wallet was forked out due to the actions of a single validator labeled as rogue by the team. Other victims faced similar mistreatment and were kicked out of the Discord group.
It is worth noting that the identity of 0D, the pseudonymous lead developer of 0L Network, remains unknown. However, several validators informed NN that they suspect Lucas Geiger, the founder of the OpenLibra project, to be behind the pseudonym. Geiger has a history of being charged by the United States Securities and Exchange Commission for fraudulent behavior. He is also the co-founder of Wireline, which raised $20 million in 2018 but failed to develop the promised network or distribute the WRL ERC-20 tokens to investors. In January 2021, Wireline faced a $650,000 fine from the SEC for an unregistered securities offering and alleged fraud involving its subsidiary, Wireline Developer Fund.
According to a report, Solana has the potential to surpass Ethereum in terms of transaction fees within a week.