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

A really intricate situation happened between Australian and Singapore companies
07 June 2018   1766

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. 

Poloniex to Receive GRAM Listing Application

The application was filed by the head of the Gram Vault custodian and Blackmoon COO Sergey Vasin before the SEC's lawsuit
22 October 2019   70

The head of the Gram Vault custodian, Sergey Vasin, filled out an application for listing on the Poloniex exchange before the SEC filed a lawsuit against Telegram.

According to Vasin, who is also a Blackmoon COO exchange, Gram Vault stores 50% of tokens from the first round and 75% of tokens from the second round of sales.

He also added that Telegram does not work directly with exchanges. The document was at the disposal of CoinDesk.

SEC asked Telegram for information on possible Gram trading on the Coinbase, Poloniex, Bittrex, Huobi, Binance, Blackmoon and Liquid exchanges. Only the last two and Coinbase Custody previously announced token support.

Recall that the SEC lawsuit has already forced Telegram to postpone the launch of TON in the spring of 2020.