AltcoinsBusiness & Finance

Oyster Protocol Was Scammed by its Founder, Says CEO of Oyster Protocol

Steals and scams are not new to the world of cryptocurrency. Recently, William Cordes, CEO of Oyster, announced that the founder of the project, Bruno Block, might be involved in an irregularity that resulted in the loss of funds of about $300,000 worth.

The CEO of the company explained that the founder of the project was able to use a function on the Oyster Protocol token contract which allowed him to reopen ICO for Oyster Pearls (PRL). Following this activity, PRL tokens were reissued and later marketed on the crypto exchange, KuCoin. Cordes stated that before his team could supervise the activity and take measures, funds of about $300,000 worth were long gone.

Kara Haas, the founder of a firm that is devoted to CPAs and accountants who have their own blockchain technology clients dealing with one cryptocurrency or other, spoke to BlockPublisher on the scams and steals taking place in the crypto world. Upon asking about the people behind these types of scams, she replied:

That’s a bit of a challenge to answer. It depends on the project, the people behind it, and many other factors. I do believe that there are problems with many of the exchanges.

Later when she was inquired by BlockPublisher about the aims of the scammers that drove them to manipulate the sources, she highlighted the primary reasons in her reply. She said:

Gains: Power and money for the primary.

Cordes explained the events that ultimately led to the mishap. He briefed that, in the past, Bruno Black told them that for modifying the peg, the dictatorship of the token contract needed to remain open. Besides undergoing several smart contract audits, the advice by Bruno Black was implemented by the company. Now, Cordes regards this event as the ‘trapdoor’ as later due to it, Bruno Black was successful in the exploitation of funds.

Cordes stated that only Bruno was capable of transferring within the PRL smart contract. After reviewing the events, he concluded that Bruno needed to do this in order to dodge the detection from KuCoin KYC processes. Moreover, he announced that more investigations are to follow which will be brought in to the light as well. Besides all the events that took place, Cordes assured that PRL was in safe hands and users needed not to worry about their holdings.

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Email: fatir@blockpublisher.com or contact the editor at editor.opinions@blockpublisher.com

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