Australian firm lost $ 6.6 million in bitcoin for the transaction

Australian firm lost $ 6.6 million in bitcoin for the transaction

The deal between the Australian firm Byte Power Party and the Singapore company Soar Labs was on the verge of collapse, when it became known about the disappearance of millions of tokens Soarcoin. Soar Labs tried to buy a share of Byte Power without actually paying for it.

It all started in June of 2017, a month before the ICO Soar Labs. Byte Power has announced that the Singapore company will acquire a 49 percent stake in exchange for $ 5 million in tokens Soarcoin. Soar Labs paid a total of $ 100,000 US and sent 306 million Soarcoins worth 0,016 $ to cover the rest.

It seemed, all goes well until a significant portion of the tokens was not frozen in January. Soar Labs said that frozen digital assets because Byte Power tried to sell them at a fabulous price for the redemption of existing debt. A total of 179,2 million Soarcoins owned by the company, plus 34.6 million of shares owned by the Alvin Foy, Executive Director of Byte Power, were frozen.

Next month, Byte Power filed a complaint on the Australian securities exchange (ASX) due to the fact that Soarcoins $ 6.6 million was withdrawn from their e-wallets.

Nicholas weaver has discovered a backdoor in a smart contract Soarcoin. The code has enabled the Issuer to revoke its tokens at zero cost. Moreover, Soar Labs did that with tokens Byte Power, they can do the same thing with any owner tokens Soarcoin.

CEO of Soar Labs Seth lim did not deny the existence of the backdoor. He argued that the code is available for everyone and anyone can study it, so the responsibility lies on Byte Power.

Neo Wenguang, technical Director Soar Labs, explained why the zero transaction is not bedorom, saying:

“The function of a zero transaction, which is visible in publicly available source code, was developed by airdrops, monitoring of transactions, as Soarcoin and future developments, such as a payment interface payments online application”.

In the past month, Byte Power announced that it had reached an agreement with Soar Labs, violated their previous agreement. Singapore company now will return shares that are purchased and also to pay compensation in the amount of $ 1.7 million. USA and 5 million Soarcoins. Both companies will return to work independently.

The question remains — will the government criminal investigation? Since Soar Labs withdrew funds from the company, partly owned by her, can it really be considered a crime?

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