Huobi accused the Pnetwork team of “malicious behavior” in the incident with Gala
The actions of the Pnetwork Defi Protocol team in a recent incident with the Gala Games game project were not an operation of the White Hacker, but malicious hacking in order to make a profit. This is stated in the statement of the Huobi Exchange.
On November 3, unknown people released ~ 55.6 billion PGALA synthetic tokens worth up to $ 2.2 billion in the BNB Chain network. They implemented part of the assets through Dex Pancakeswap, helping out over $ 4.5 million. According to Huobi, a further coordinated attack from several addresses brought to attackers more than $ 10 million profit through arbitration.
Then Pnetwork explained that they found a vulnerability in the PGALA smart contract. The actions of the developers were allegedly the attack of the White Hacker to prevent possible exploit. The statement of the platform was confirmed by the President of the Gala Games by blockchain Jason Brik.
“We believe that this is a deliberate attack planned by the Pnetwork team, and the White Haking operation is simply an illegal excuse that Pnetwork is looking for to avoid legal consequences,” said Huobi.
The exchange claims that it has a firm reason for a similar withdrawal. Among the arguments, the company indicated:
- Vulnerability appeared in a smart contract 67 days before the incident, and nothing confirmed that anyone from the outside could use it;
- The developers warned Huobi about their actions through unofficial channels 50 minutes before the “hacking”, leaving no time to an adequate reaction;
- According to Pnetwork, the issue of 55.6 billion PGALA was designed to compensate for the liquidity pool on Pancakeswap, but its volume was only about $ 400,000.
Huobi noted that the Gala Games and Pnetwork teams “could use a safer method of eliminating vulnerabilities”:
“However, they decided to hide the facts and held a massive attack using 55.6 billion tokens within 50 minutes after contacting the exchanges. This is a malicious attack, motivated by making a profit, and it is equivalent to an act of terrorism against innocent users and platforms. The entire industry was inflicted a huge blow as a result of this incident “.
The exchange contacted the Pnetwork team to agree on reasonable compensation to the victims. At the time of publication, Huobi did not receive an “acceptable answer”.
“In view of the unconfirmed one -way statement of Pnetwork about the incident with Gala, which is seriously dispersing the facts, this shows how the project team tries to evade responsibility https://gagarin.news/news/u-s-whistleblower-backs-the-nym-privacy-coin/, causing significant damage to Huobi Global users.[…] In order to fulfill our obligations to customers, we will take on the initiative to organize and represent [interests] of victims. We will work with partners to use all legal funds, including collective lawsuits and submitting applications to the police, to investigate and criminal charges against offenders from Pnetwork, ”the exchange team said.
Huobi called on the vulnerability to return the “illegally obtained profit”. The company is ready to pay to attackers from a bounty fund of $ 1 million and not file claims against them.
“We resolutely condemn Huobi false accusations against Pnetwork and will seek a trial. We have documentary confirmation that Pnetwork acted conscientiously and all the actions were agreed in advance with Gala Games, ”the Defi Protokol team answered.
According to Pnetwork representatives, the exchange confirmed the warning in two minutes, but blocked deposits only a few hours later. They also refuted the application for a protocol of any profit from this operation.
Recall that the losses of Web3 industry from exploits have approached $ 3 billion since the beginning of the year. October became recorded with damage to $ 760.2 million.
Read the FORKLOG Bitcoin News in our Telegram-cryptocurrency news, courses and analytics.