Further Details about the Oyster Protocol Scandal Surface
As 2017 came to an end, Oyster Protocol had $90 million worth of their digital currency PRL. The idea was permitting owners of the site to gain profits through storing and also securing of IOTA Tangle files as opposed to engaging in advertising. Furthermore, the users assist in calculating resources for the site without having to view any ads. PRL is the main token for exchange activities on the platform.
It has recently been announced that the person behind this process had made a decision to exit scam the company with PRLs that are worth about half a million US dollars. He took advantage of a breach in the smart contract system. The person responsible who goes by the pseudonym Bruno Block and remains anonymous to this day, had guaranteed personally to not access the coins.
The news was first announced in a statement by ex-CEO of the company, William Cordes, that Block was able to generate more than 3 million fraudulent PRLs and used them to cash out as much money as he could. It seems the company has demonstrated that it fully intends to continue its operations in spite of this scandal and they have been completely transparent regarding the situation.
In a recent online post by Cordes, who had been fired from the company by Block, more details emerged about the situation and how Block sees his own actions as justified.
Block Sees No Issue with His Actions
In the post, there was no apology from Block whatsoever. As per his account, he said he had dumped on Cordes before he and his friends dumped on everybody else. His motivation for what he had pulled off was the drop that took place in ETH prices and, weirdly enough, anti-BTC Reddit forum r/Buttcoin. He continued on to say the entire industry is a Ponzi scheme and that ETH will decrease to $5 with an economic crisis expected any day now. He further stated that he did so because he had burned his PRL tokens before, so creating new tokens through this breach was a justifiable action, in other words if he fooled you once shame of him but when he fooled you twice, shame on you.
Cordes Speaks Out
Block had emphasized the fact that his main issue with management was that he was looking to hire more developers and that the trading of cryptocurrency wasn’t above board. Cordes, however, stated that Block had got it wrong on at least one occasion and also that insider trading was not to be considered.
He stated that in a hypothetical sense if the company knew there was a likely listing on a huge exchange platform, this information would not be traded. They shared that the staff gets paid by ETH or PRL, and that helps amass PRL and that the team wouldn’t ever back up front-running a huge catalyst such as this.
As Block’s fraudulent actions could very well lead to a criminal charge, this in all likelihood will not be the last time the public will hear about him, although in the future it may be with his given name instead of an alias. As for the company going forward, things are in the hands of investors as to whether or not they still have faith in the coin after this scandal.