Australian Company Loses $6.6M as Crypto Goes Missing

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Australian Company Loses $6.6M as Crypto Goes Missing

Australia-based Byte Power Party has lost USD 6.6 million after millions of Soarcoin tokens went missing when Singaporean company Soar Labs attempted to purchase a stake in the Australian firm without actually paying for it, reports CCN.

In June 2017, a month prior to Soar Labs’s token sale, Byte Power announced the Singaporean company would acquire a 49% stake in exchange for USD 5 million. Soar Labs paid a total of USD 100,000 in fiat and sent 306 million Soarcoins valued at USD 0.016 each to cover the rest.

In January, a large portion of the tokens was alleged to be suspended according to Soar Labs, as Byte Power was trying to clear debts by selling off the tokens at very low prices. A total of 179.2 million Soarcoins held by the company, plus 34.6 million held by Alvin Phua, Byte Power’s CEO, were frozen.

A month later, Byte Power responded to Australian Securities Exchange (ASX) maintaining that the USD 6.6 million worth of Soarcoins had been withdrawn from their e-wallets.

It appears that a backdoor was found in Soarcoin’s smart contract, allowing the issuer to call its tokens back at a zero-fee transaction rate. Soar Labs CEO Seth Lim didn’t deny the existence of the backdoor. He claimed the code used was available for anyone to see and it was Byte Power’s responsibility to review it.

Neo Wenyuan, Soar Labs CTO, explained further saying: “The zero-fee transaction function, which is visible in the public source code, was developed for the purpose of airdrops, monitoring transactions as the developer of Soarcoin and future development activities such as payment interface with online apps.”

It has been reported that Byte Power and Soar Labs have reached a settlement resulting in the Singaporean company returning the shares and paying compensation amounting to USD 1.7 million and 5 million Soarcoins. Both have now parted company.


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