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Author Topic: brunoblock scammed PRL token holders  (Read 32 times)
xtraelv
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November 01, 2018, 04:53:26 PM
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What happened:: Founder of PRL sold his coins and then created more and dumped them on his investors.

Scammers Profile Link: brunoblock

Reference Link:  
https://bitcointalk.org/index.php?topic=5059819.msg47483273#msg47483273
https://ambcrypto.com/oyster-prl-exit-scam-after-smart-contract-manipulated-to-print-3-million-tokens-price-takes-65-hit/
https://www.livebitcoinnews.com/oyster-protocol-founder-exploits-smart-contract-trapdoor-to-mint-and-sell-3-million-prl-tokens/
https://cryptovest.com/news/developer-and-founder-tanks-oyster-protocol-prl-price-by-deliberate-dumping/
https://www.reddit.com/r/Oyster/comments/9stgqn/brunos_message/
https://archive.fo/DXjlb
https://oysterprotocol.com/oyster-update/
https://medium.com/oysterprotocol/oyster-update-b813390ce10e
https://twitter.com/OysterProtocol

Amount Scammed: > $300,000
Payment Method: Creation of more tokens and selling them on KuCoin
Proof of Payment:
ETH: 0x0001Ee57Bb28415742248d946D35C7f87cfd5A54
BTC: 17pwqhD9dLGMcMZD9xvKxiePHNffHV5T6y

PM/Chat Logs:


Additional Notes:

Quote
All,

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 from 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.

Despite Oyster passing three separate smart contract audits, directorship of the token contract had to remain open so that the peg could be adjusted over time. Bruno Block, the original founder and chief architect of the project, was the only one who had the ability to transfer directorship within the PRL smart contract. After our initial review, we are inclined to believe that these were solely the actions of Bruno Block and that he did this now to avoid detection from KuCoin KYC procedures (that will be implemented on November 1st). These KYC procedures would have limited withdrawals on Non-KYC’ed accounts to no more than 2 BTC per day and would have prevented this from happening. This was well-orchestrated and well-executed (at a time when he knew a majority of the KC team would be offline). This also caught the entire team outside of Bruno Block by surprise, as the team collectively holds ~5% of the total supply in personal wallets. The team has been working tirelessly on this since day 1, without pay at some points in time. This project has been built on the back of hard work and raw determination and we will not let Bruno’s role is a bad actor in all of this undermine a project that the entire rest of the team is completely devoted to.

For those of you holding PRL, your PRL holdings are safe. We are still evaluating our options, 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. More details to come here but we will do our best to make everyone whole. Despite the losses, $300k only represents ~1.5% of our market cap prior to this all transpiring. While this is far from ideal, this will most definitely not be a deathknell for the project.

We are also interested in obtaining any information that folks may have around Bruno’s potential identity. Despite working alongside him for the last 10 months, Bruno has always maintained his anonymity. After I took over the CEO role, Bruno’s activity within the project dropped off sharply. If you have any information on who Bruno may be or where these funds may be directed towards, please reach out to us via e-mail to discuss further.

In the interim, our team will be working around the clock to remedy this situation. We don’t know why Bruno did what he did or what his intentions were at the end of the day, outside of profiting from a loophole that he intentionally left in the smart contract. While I still take full responsibility for this all transpiring, I had no reason to believe Bruno would do something like this to harm the project and much of the work that he had a significant role in creating. We will not let his selfish actions today damage the long-term viability of the project.
https://medium.com/oysterprotocol/oyster-update-b813390ce10e

Quote
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
https://www.reddit.com/r/Oyster/comments/9stgqn/brunos_message/
https://archive.fo/DXjlb


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xtraelv
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November 01, 2018, 05:00:55 PM
 #2

Concerns about the viability of the project were already voiced in April:

Not trying to spread FUD but at this time PRL is no more than just a simple ERC20 token with no working product. Canceling the mainnet release just a few days before the promised date also doesn't help the credibility of the devteam. Look what happened to eBTC for example, I really hope PRL won't go the same route but you never know which project you can trust in crypto-land.

Expect the unexpected and never go all-in in one single project.

Be careful guys.


https://np.reddit.com/r/CryptoCurrency/comments/8q97xe/oysters_mainnet_launch_and_why_the_drama_isnt/e0i7m0v/?context=4

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