Trader loses over $1m due to 0L Network hard fork

A trader lost more than a million dollars worth of cryptocurrency due to a hard fork of the 0L network.

An unlucky trader named NN took to social media platform X to discuss losing his assets due to this change. The user said that the community did not approve of the hard fork of the 0L network.

1/ How deeply I was shaken @0LNetwork – Worth 7 figures in dollars.

TLDR: The team behind it @0LNetwork ( $LIBRA ) decided to hard fork because of a “rogue core” member. This fork resulted in the deletion of 4% of the total supply and also burned innocent people’s wallets, including tokens… pic.twitter.com/UdtUBJHO83

— NN 🌸🐧 (@nn_blossoms) May 8, 2024

The 0L Network was created to reward developers and other community members who actively participate in project construction.

“The team behind @0LNetwork ($LIBRA) decided to hard fork due to a “rogue core” member. This fork resulted in the deletion of 4% of the total supply and also burned innocent people’s wallets, including tokens purchased almost 2 years ago.”

NN, anonymous trader

NN purchased 147 million Libra tokens worth approximately $1.47 million at the time in February 2023 before joining the protocol to assist with marketing efforts.

The trader claims that the team was aware of the bug for over two years and that some insiders exploited it. However, the team decided to ignore the issue due to the insufficient value of the Libra token.

The hard fork was caused by a bug in the smart contract that allowed insiders to unlock tokens faster by distributing them across multiple wallets. But according to a pseudonymous trader, the gap remains with v7, the latest version of 0L Network.

Rather than fixing the vulnerability, the team decided to disband all wallets they believed were exploiting it. NN said the team knew innocent wallets would be affected because it was impossible to keep track of all tokens.

Despite purchasing tokens from six different validators, NN’s wallet was destroyed by a validator that the team thought was fraudulent.

“I purchased tokens from 6 different validators, but my entire wallet containing all my tokens is being distributed because one of the validators was thought to be fraudulent.”

NN, anonymous trader