Byte Power Party Lose $6.6M Worth Crypto Due to Backdoor

A really intricate situation happened between Australian and Singapore companies
07 June 2018   577

The deal between the Australian company Byte Power Party and the Singapore company Soar Labs 'went south' after the first discovered the loss of several million Soarcoin tokens. Soar Labs tried to get a stake in Byte Power, not paying anything for it. This is reported by CCN.

It all began in June 2017, a month before the ICO of Soar Labs. Then Byte Power reported that the Singapore company plans to buy 49% of the shares for $ 5 million. Soar Labs paid $ 100,000 for the deal, and the remaining amount covered 306 million Soarcoin, which at that time was $ 0.016 per token.

Everything went smoothly, until in January most of the tokens were frozen. Soar Labs said that this was done because Byte Power was trying to sell tokens at a crazy rate to pay off their debts. Totally, the company had 179.2 million Soarcoin tokens at that time, and 34.6 million Soarcoin were from Alvin Foa, CEO of Byte Power, all of which were frozen.

In February, Byte Power complained to the Australian Stock Exchange (ASX) that $6.6M worth Soarcoin tokens had disappeared from its electronic wallet.

Publicly the results of this complaint are still unknown, but in the meantime Nicholas Weaver discovered a backdoor in the Soarcoin smart contract, which allowed the issuer to withdraw tokens with zero commission. Thus, Soar Labs could do this not only with tokens that Byte Power owns - it has enough power to do this with any holder of its tokens.

CEO Soar Labs Seth Lim does not deny the existence of a backdoor. He said that the code was available to everyone, and the responsibility for the oversight lies with Byte Power.

The zero-fee transaction function, which is visible in the public source code, was developed for the purpose of airdrops, monitoring transactions as the developer of Soarcoin and future development activities such as payment interface with online apps.

Neo Wenyuan

CTO, Soar Labs

Byte Power reported that it had reached an agreement with Soar Labs. It dissolves their previous arrangement - the Singapore company will return the shares purchased, and will also pay compensation of $ 1.7 million and 5 million Soarcoin tokens. In addition, both companies will again work independently of each other. 

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Pantera Capital to Intend to Raise $175M for Crypto Fund

Whether the firm can achieve its funding goal is still unclear
16 August 2018   192

Pantera Capital intends to raise up to $ 175 million for its third venture fund, focused on the blockchain and cryptocurrencies, which marks significant progress against the background of the company's other two funds: the assets of the first of them are $ 13 million, the second - $ 25 million. This is reported by TechCrunch.

As reported, company's partner Paul Veradittakit says the target amount is a “function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds. With more interesting later-stage investments [on our radar], too, we want to be flexible and able to move with the market.”

Whether the firm can achieve its funding goal is still unclear. According to documents recently sent to the US Securities and Exchange Commission (SEC), it has already managed to raise more than $ 71 million with the participation of 90 investors. Veradittakit calls this event "the closing of the first transaction".

One of the company's new funds, which opened last year, has a hedge fund structure and focuses exclusively on the ICO. The founder of the company Dan Morehead said earlier that Pantera takes part in the first stages of such campaigns, "basically getting a discount to the ICO price by getting in early, when it’s just a team and a white paper."

The second fund of the company is engaged in investing in bitcoin and has managed to serve a large number of investors during its existence. According to Morhed's calculations, the fund, launched 5 years ago, demonstrated a return of 10 136%.

The last fund Pantera invests in cryptocurrencies, which are already traded on the exchanges. It uses machine learning for algorithmic investment and takes into account the views of the company's management when making investment decisions.