IMPORTANT: Token Swap / Trading Halt

Summary

A recent EOA Admin Wallet exploit on a ferrum-dev wallet resulted in an attacker targeting  vested tokens in a vesting contract. This announcement details what happened, what we are doing about it, and how NetVRk is working with Ferrum to ensure that our community and supporters are made whole. 

Incident Report – EOA Admin Wallet Exploit (ferrum-dev wallet)

At 13:47 UTC on 23-December-2023, Ferrum was notified that one of the IronVest contracts deployed for a NetVRk investor seems to have been drained and the tokens subsequently sold at a DEX.

This was not an exploit of NetVRk tech. This was also not an exploit of the Ferrum contract code. Rather an attack resulting from a leaked private key of an EOA ferrum-dev wallet. The attacker targeted the admin wallet of the Open Zeppelin ProxyAdmin contract. This was only possible due to the leak of the private key. Without the private key leak the vesting contracts cannot be exploited in this manner. Ferrum has stated that this dev key should not have been used in prod and has shared mitigation measures in the incident report.  

See more details in the Incident Report.

Token Swap

WAGMI – NetVRk is committed to resolving the impact of this attack. $NTVRK Price and Value will be restored to the same levels as it was prior to the attacker draining and dumping the tokens as a result of the wallet EOA key compromise. 

$NTVRK Price and Value will be restored to the same levels as it was prior to the attacker draining and dumping the tokens as a result of the wallet EOA key compromise. How will we accomplish this?

Token Swap

We will be taking on-chain and off-chain (CEX) snapshot of holdings, including any amounts staked, or vested. The new $NetVRk token will be deployed on the chains identified in the upcoming DAO proposal vote.

How long will this take?

Token Swap timeline typically takes 3 to 10 days. We are also including a DAO proposal timeline of 7 days. Our estimate to complete the Token Swap and launch the new token with liquidity is 10 business days. Targeting a launch date of around 05-January-2024. We will share the exact timeline in the upcoming days. 

What will be the price ratio?

The price will be set at $0.2422 it was before the exploit (block number 18848622)

FAQs:

Snapshot Block (Used for holdings only):

18848622

Attacker Wallet Exploit Block:

18848623

Liquidity Removed to Protect Community Funds Block:

18850778

https://etherscan.io/block/18850778
Time in UTC: Dec-23-2023 08:05:11 PM +UTC

I am a user who:

1. Did not buy or sell tokens after the exploit (block number 18848622)
   1. I am good, I’ll get tokens back with Token Swap
2. Either bought or sold the tokens after the exploit but before the announcement to stop trading or liquidity removal.
   1. What happens if I bought them?
      1. DEX Buys
         Any users who bought NetVRk between Ethereum block 18848623 and Ethereum block 18850778 will be airdropped the number of tokens they purchased.
         
      2. CEX Buys
         We are working with KuCoin and MEXC to ensure that any users who bought NetVRk between Ethereum block 18848623 and Ethereum block 18850778 will be given tokens the same amount of tokens in their account.
         
3. I bought or sold the tokens after the announcement

Trading after the announcement is not able to be reimbursed. 

Conclusion

If you bought tokens or sold tokens what should you do?
Halt / Stop trading

We have mentioned that due to Christmas Holiday we don’t have a clear response from CEXs on trading and related balance handling. What we know is that we will do our best to get users taken care of.

But if you continue to trade or ask for advice on what happens if you trade, you are basically asking what happens if you FAFO…well, our advice is to stop trading.

If you trade, we can’t answer the hypothetical situations that come up for all the varied scenarios resulting from the trade.

Once we have more details from CEXs we’ll share them.

Current KuCoin opinion:
https://t.me/NetVRk_Official/367089

Summary:

• DEX traders before announcement are fine
• CEX traders before announcement are fine

What about after announcement for CEX traders?
We will try to accommodate a solution but are waiting on CEX stakeholders to come back from Christmas holiday. Meanwhile stop trading.