Anonymous Founder of Oyster Pearl is suspected in exit scam with $300,000

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Anonymous Founder of Oyster Pearl is suspected in exit scam with $300,000
Anonymous Founder of Oyster Pearl is suspected in exit scam with $300,000

Users of Oyster (PRL) cryptocurrency on October 30 sounded the alarm in social networks, suspecting that the founder of this project, acting under the pseudonym Bruno Block, deceived investors. This is reported by the Blockchain Reporter.

In the official telegram channel of the project, the administrators placed the message:

“We can confirm someone has taken control of the Smart Contract. Do NOT BUY ANYTHING. We are waiting for more information and also trying out best to close KuCoin’s trading right now!”

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Someone controlling the smart contract released and immediately sold 300,000 tokens, rescuing about $300,000. It seems that the attacker deliberately began to operate at night when employees of the KuCoin exchange, the largest trading platform for Pearl, were sleeping.

The project, which ultimately became something like a stablecoin, offering distributed data storage based on a directed acyclic IOTA graph, was founded by an unknown person under the pseudonym Bruno Block. Judging by recent events, the reason for his anonymity was very prosaic.

Partly anonymity explains the time chosen for the “operation”. From November 1, KuCoin launches verification of the identity of customers, after which anonymous traders will be able to withdraw no more than two bitcoins per day.

According to the project’s telegram channel, recent inspections did not reveal any weak points:

“No smart contract bugs in Oyster Pearl have been found and the contract passed 3 separate audits. Directorship of the contract had to remain open so that peg could be adjusted. Earlier this morning directorship was transferred by the original Ethereum addressed controlled by Bruno Block, allowing new director to mint 3 mil new PRL.”

Since the purpose of the token is to serve as a medium of exchange, allowing you to buy storage space, and the cost of storage decreases with time, the storage volume associated with each coin had to be adjusted. However, this feature also gave Bruno the opportunity to re-launch ICO and release millions of new tokens.

Team members said they were shocked by the betrayal of Bruno. They ask the public to report the whereabouts of the fraudster. The team owns 5% of the total stock of PRL tokens, however, these coins may be useless if the project cannot be saved. The prospects of the project are unclear now.