Topic: OYSTER PEARL (PRL) smart contract BREACHED - markets paused (Read 207 times)

This is even worse than the other scams. Bitconeect for example, was a scam you could foresee for economic and marketing reasons. But this project you would only have to know about this backdoor if you were a programmer and had read all the source code. This demonstrates how difficult it is to analyze a project even with open source.

We are very dependent on the curiosity of other people. I have never read a source code from start to finish and would have difficulty understanding something like what was done with Oyster.

Perhaps it would be very interesting to have a group of hackers whose sole purpose was to exploit flaws in those projects. Could even have a bounty paid in BTC. Certainly, those who believe exclusively in the BTC could finance something like that just for fun.

but will most likely be executing a contract swap on the block just prior to this all happening (e.g. All 98.5 million PRL prior to the contract vulnerability will be exchanged on a 1:1 ratio to PEARL (or something to that effect)). We will also be evaluating how we can help those that were taken advantage of from this incident.

PRL now trades around $0.03, after diving from levels of $0.22. PRL was appreciating and even having a short-term rally when the news of smart contract abuse and exchange dumping caused irreparable damage. It turned out the Oyster Protocol founder and developer, going by the moniker “Bruno Block”, had disagreements with the project’s CEO, Bill Cordes.

Bruno's message
Focus everyone:

When Oyster boomed in December I wanted to go on a huge hiring spree. I was always very product focused but people only wanted to hear about marketing. Chris Bamber approached me along with Bill. Bill turned out to be an honest and hardworking guy (as CFO), but Chris did next to nothing. I paid each member of c-suite 1 million PRL each which was evaluated at half a million dollars each.

Chris bailed on us for the exponential hiring. Why was I so pushy about hiring? Because I knew Bitcoin and all of crypto was in a bubble. I sold a lot of my own PRL and PRL for the treasury but Bill preached hesitation instead.

Then ETH went from $1200 to $200. It became difficult to keep hiring people, my plan for a large robust team of developers was blocked. I spent downtime to start healing from trauma I was going through.

Then Bill told the group that we got accepted on Binance. That’s when the problems started. The price immediately started pumping from 4c to 26c. I warned Bill against insider trading, he didn’t care. So instead of him and his VC friends dumping on you, I dumped on him.

I advise all of you to get out of crypto. Go educate yourselves about what is happening with Tether. The entire crypto sphere is a giant Ponzi scheme. I warned all of you, multiple times, in private and public, and nobody listens. Ethereum is going back to $5, if you want to sell back to a greater fool then you will only find yourself to be that fool.

https://twitter.com/Bitfinexed/

https://reddit.com/r/buttcoin

What will now happen:

Bill, you’re fired.

I am going to program the protocol on my own, gradually. If someone wants to help me they can do so free of charge. No marketing, no nonsense.

PRL will still be the valid token used by the protocol (no contract swap).

I reject the Binance listing and I don’t want Kucoin to re-activate our listings.

Focus on the storage peg, that is what brings value to the token, not your Ponzi-Shenanigans.

If you want to buy only to sell to a greater fool, then you are that greater fool. PRL and SHL are not to be listed on an exchange until they are actual functioning products. I will also consider revealing my identity over the next few days. I will be posting updates on development after I straighten out this situation.

I am now going to dump as many chat logs as I can to show what happened with Oyster.

UPDATE:

If you want to play greater-fool games with Bill and co, and there is an overwhelming vote in support for Oyster becoming a permaponzi, then I will leave you all to have fun with it.

If you want PRL to operate as I've described in the whitepaper, everyone is fired and I will slowly but surely work on the protocol and post progress publicly. The last time I hired a bunch of people and threw money at them they turned it into a circus.

However, I don't believe there will be electricity running through the power grid soon. I sent this video and others like it a long time ago to this chat:

https://www.youtube.com/watch?v=VOMWzjrRiBg

Go learn about peak oil and the fractional reserve banking system. The stock shale bubble is an obfuscated means to subsidize the price of oil. In Brazil, Indonesia, and other developing nations, the price of oil is subsidized with debt directly by the government. When the debt bubble pops, the price of oil will skyrocket, trucks won't be bringing produce into your city let alone computers won't be spending energy to secure the blockchain.

I believe in Oyster as a product, but I don't believe there will be a future to host it. I will program it since the program is a promise from me, but don't complain that Oyster isn't running when a banana costs $5,000.

Anyone here who has swiped a credit card or taken an interest-bearing loan has the blood of the incoming collapse on their hands. Billions of people will die, there are massive droughts and food shortages as we speak. I've made a lot of dollars by selling PRL, I immediatelly ditched the dollars to buy real things so that I can protect myself and my family from the collapse. That's all I ever wanted, and now that I have that secured, I will deliver the protocol which I promised myself. Give me some time to get my head straight after these dramatic few days, I will gradually post progress on github.

You can also buy popcorn futures on /r/buttcoin

I've made a lot of dollars by selling PRL, I immediatelly ditched the dollars to buy real things so that I can protect myself and my family from the collapse. That's all I ever wanted, and now that I have that secured,

Because I knew Bitcoin and all of crypto was in a bubble. I sold a lot of my own PRL and PRL for the treasury.

I advise all of you to get out of crypto. Go educate yourselves about what is happening with Tether. The entire crypto sphere is a giant Ponzi scheme. I warned all of you, multiple times, in private and public, and nobody listens. Ethereum is going back to $5, if you want to sell back to a greater fool then you will only find yourself to be that fool.

Then ETH went from $1200 to $200.

I am going to program the protocol on my own, gradually. If someone wants to help me they can do so free of charge. No marketing, no nonsense.

I believe in Oyster as a product, but I don't believe there will be a future to host it.

I read about the incidence in a news and it stated that oyester protocol CEO scam exit.this is very saddened for a ceo to get involved in such mess. I hope this don't affect the holders

I read about the incidence in a news and it stated that oyester protocol CEO scam exit.this is very saddened for a ceo to get involved in such mess. I hope this don't affect the holders

News headlines today:

ALTCOINS Oyster [PRL] exit scam after smart contract manipulated to print 3 million tokens: Price takes 65% hit
https://ambcrypto.com/oyster-prl-exit-scam-after-smart-contract-manipulated-to-print-3-million-tokens-price-takes-65-hit/

Oyster Protocol Founder Exploits Smart Contract ‘Trapdoor’ to Mint and Sell 3 Million+ PRL Tokens
https://www.livebitcoinnews.com/oyster-protocol-founder-exploits-smart-contract-trapdoor-to-mint-and-sell-3-million-prl-tokens/

Oyster Update
"Earlier today, it was discovered that the transferDirector function was utilized on the Oyster Protocol token contract. This allowed the new director to re-open the ICO for PRL and re-issue new tokens (1 ETH = 5000 PRL / .04 per PRL). The individual in question then sent these tokens (upwards of 3M PRL) to KuCoin where the tokens were market sold. They were able to extract ~$300,000 in funds prior to us being able to shut down trading and withdrawals on KuCoin..."
Read more: https://medium.com/oysterprotocol/oyster-update-b813390ce10e.

Problem with PRL contract
https://etherscan.io/tx/0x4fdf86fb8c15823202e14b89411d6bbf88799b103fb0c3701766bd749fba21c0

There is something terribly wrong with the Oyster token contract. People are sending Ether to the contract at a rate of 1 ETH to 5000 PRL tokens (0.0002 Eth per PRL), which means that they can sell it for higher on Kucoin.

The total supply has also increased.

UPDATE:

https://etherscan.io/tx/0x2321e305c20f45429f11045b9235e9bbd66b17bacede173ca86144ac5533d3bf

Seems like openSale() is called by this address, as director privileges is passed to this account.

UPDATE 2:

transferDirector() is called by the address 0x2da59901939682eab8887edb0fd1ce4299072265: https://etherscan.io/tx/0x1ea00178c70ca6c1cc2d020939831d1393ac5fcf6154495395a074e19e0e70f9

The address 0x2da59901939682eab8887edb0fd1ce4299072265 seems to by an Oyster controlled address originally used to create the PRL token ICO contract. The account got randomly accessed 6 hours ago after months of inactivity. https://etherscan.io/address/0x2da59901939682eab8887edb0fd1ce4299072265

My theory is that the keys to the account got leaked, or someone went rogue. That sort of explains the low volume pump of PRL, someone was just waiting to print and dump.

function withdrawFunds() public onlyDirectorForce {
    director.transfer(this.balance);
}
The hacker will be able to withdraw the ether used to mint tokens and repeat the cycle infinitely, even though he/she has not chose to yet. However, ANYONE can receive 5000 PRL for 1 ETH (but you essentially would be giving the hacker free ether).

UPDATE 3:

function selfLock() public payable onlyDirector {
    // The sale must be closed before the director gets locked out
    require(saleClosed);
    
    // Prevents accidental lockout
    require(msg.value == 10 ether);
    
    // Permanently lock out the director
    directorLock = true;
}
It seems like selfLock() was never called. Which means that the PRL contract was insecure if at any point the director of the contract gets compromised. If an ICO with the ability to mint tokens needs to be able to reopen at any point - I highly recommend in the future to move the ownership of the contract either to a multi-signature wallet, or have a timelock on directorship transfer (reversible) with a huge alarm if the function is ever called unknowingly.

POTENTIAL SOLUTION

This is obviously very bad. Since there is no way to reclaim directorship over the contract, the only way out is to create a new token contract based on a snapshot of the block height before the directorship transfer occurred. This would mean that people who bought PRL after the hack would be shafted, so maybe the latest snapshot should be taken, but this would shaft the people who panic sold the dip.

Since the highest volume was on Kucoin, not sure if Kucoin would reverse any trades from the timestamp of the hack.

In total, the perpetrator printed ~ 4 million PRL, 5% of total supply. Random people also started to send ETH to get some PRL, DO NOT DO THIS or risk losing funds.