- Deviant Coin’s team has been investigating exploit activities occurring over the past month.
- The team confirmed hackers have obtained 200,000 DEV and are threatening to sell and collapse the coin.
- The Deviant Team is fighting back by reworking the blockchain and halting trading before a blockchain snapshot at block 303,777.
Deviant Coin, a security blockchain project, has been attacked by hackers leveraging numerous exploitative activities to obtain large amounts of DEV. Hackers demanded 10 Bitcoin in exchange for not publicly releasing and abusing a discovered exploit in the Deviant blockchain code. The Deviant team ignored the extortion attempts, thus triggering the hackers exploit, and speeding up the blockchain as well as payout frequency, further manipulating the community. This manipulation was executed by consolidating masternode wallet addresses, thus increasing reward payout to one’s own masternode address.
Deviant Freezes Cryptocurrency Assets
Upon further investigation, the team concluded that the sum of coins exploited was significant enough to merit an asset freeze. The team proceeded to freeze all Deviant Coin trading as most of the DEV was held in offline wallets and freeze exchange transfers. The freeze has not only prevented the hackers from selling their stolen cryptocurrency, but also it also helped the development team to identify the wallets that were manipulating the blockchain.
“The extent of the exploits are significant enough that we feel the community deserves to see those assets frozen so the perpetrators cannot dump them on the market and use them to fund a future exploit. Also, putting another patch in place could stop them from exploiting the coin further, but still does not prevent them from dumping their coins. Deviantcoin was formed with a vision of providing a secure crypto experience and therefore we cannot allow bad actors to hijack our system. We will also not be bogged down by cheap threats. We value the trust you have assigned to us so we cannot jeopardize the goodwill at the expense of making a quick buck. ” -Deviant Team
The Deviant Coin Swap
After much consideration the Deviant coin team has decided to initiate what is known as a “coin swap”, essentially, creating a new Deviant coin, with added security features ( as well as patched previous exploits), and forcing these new DEV coin at a 1:1 trade value for the “old” coins, if the older coins are not swapped through this program, they will then be antiquated and worthless. To add insult to injury, the Deviant developers are not allowing anyone that utilized the previous exploits, to transfer their coins over, effectively “destroying” these exploited coins (increasing the value of current production coin).
“As a result, we will be taking the step of reengineering the core blockchain code base that will eliminate the exploits, add more features and make it easier to provide future maintenance. Due to incompatibility issues with the previous code base, we will be performing a coin swap. For all those who do not know what a coin swap means, basically we issue new coins at 1:1 ratio to all unexploited wallet addresses.” — Deviant Team
The Deviant development team has a detailed guide on consolidating funds before the snapshot block and how it will work. The Development team has also recommended transfering funds from android wallets to PC wallets, as a new mobile wallet will be pushed out.
Originally published at blog.knodin.com on June 21, 2018.