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

A really intricate situation happened between Australian and Singapore companies
07 June 2018   1418

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. 

Bitfinex's LEO Token Whitpaper to be Released

Public stage of tokensale may not be conducted if hardcap of $1B won't be reached during closed sale
08 May 2019   268

Bitfinex Cryptocurrency Exchange published the whitepaper LEO token, with which it intends to raise $ 1 billion during the initial exchange offering (IEO).

It is expected that this amount will allow to fill the previously formed deficit of $ 850 million - the site operator will redeem tokens monthly for an amount of 27% of the profits.

Private stage of tokensale ends on May 11. If the intended hardcap won't be reached by this time, Bitfinex may refuse the public part of the campaign.

If fewer than 1 billion USDt tokens are sold by private token sale, the Issuer may thereafter sell remaining tokens at times and in a manner it deems appropriate in its sole discretion, consistent with applicable law. 

LEO Whitepaper

The issuer of the LEO token is Unus Sed Leo Limited, the newly registered IEO-iFinex platform.

The document also says that iFinex, which will be launched in June, will actively participate in the development of the second-tier Lightning Network.

iFinex has joined with a number of other companies and individuals to help develop and finalize the support for digital assets on Lightning Network. Ideally, digital assets developed and introduced by iFinex, including the LEO token, will be among the first digital assets launched on the Lighting Network.

LEO Whitepaper

In addition, Bitfinex plans to create a “a licensed and regulated security tokens exchange”, launch a derivative product with security at USDT and leverage up to 100x, as well as the Dazaar Big Data Marketplace and Betfinex exchange rates.

Another project will be the modular set of tools, libraries and protocols μFinex, based on the principles of open source. It will be used in both exchange and derivative products.

It worth reminding that in late April, the Attorney General’s Office of New York reported receiving a court order against Bitfinex in connection with the alleged loss of the last $ 850 million and the concealment of this fact from market participants.

Representatives of the trading platform said that we are not talking about permanent loss. These funds are frozen in bank accounts of Panamanian processing Crypto Capital Corp., located in four countries.

To ensure liquidity, Bitfinex was forced to use Tether Limited's funds for a loan and, according to the AG’s Office, has already received $ 750 million from the company's reserves. This was considered by the department as a crime.

On May 7, the New York State Supreme Court upheld the injunction against the Bitfinex Bitcoin Exchange, which does not allow Tether Limited to use its reserves for Exchange lending and other investment activities.