Oyster Protocol owner exit scams with $300.000
The original designer of Oyster Protocol (PRL) has used a backdoor mechanism to steal at least $300.000 worth of PRL. In total over 3 million tokens were stolen from the ICO contract, moved to the exchange Kucoin and sold. Programmer Bruno Block is the accused in this situation. Oyster Protocol's CEO William Cordes hasn't announced steps to go to the authorities, neither did Kucoin.
Bruno Block left a backdoor in the code of the protocol. He told the backdoor was needed for future adjustments. Auditors made sure the smart contract was safe and Block was the only one with the ability to transfer directorship within the PRL smart contract.
Cordes believes Block did this now to avoid the KYC procedures that are coming into place on Kucoin starting from November 1st. Non-KYC accounts can only process 2 BTC per day, while the scammer transferred 70 BTC over the course of six hours.
The Oyster Protocol tokens were created and transferred to this Ethereum address: 0x0001Ee57Bb28415742248d946D35C7f87cfd5A54. After which the PRL tokens were placed on Kucoin and sold for Bitcoin. The BTC were all transferred to one address, after which they were moved to different locations.
As a result of Block's actions the value of PRL has plummeted to 0.00001150 BTC ($0.07), where it was around 0.0003000 before the exit scam.
In a post-scam conversation between Block and Cordes, Block confessed what a did. He claims the entire crypto sphere is a bubble and a ponzi. He did everything only for his own financial well-being. Block, who's the owner of Oyster Protocol, has fired Cordes and the rest of the team. He claims to continue on his own.
Cordes is trying to continue working on Oyster and setup a new company called Oyster Inc. They opened a Telegram channel to discuss matters further.
Posted from my blog: http://www.nederob.nl/2018/11/01/oyster-protocol-owner-exit-scams-with-300-000/