11) Latest Starter.xyz Exploit Sees Ex-Employee Steal From Their Launchpad Pool
The Legion Network team has discovered through their own investigations that the Starter.xyz (Launchpad) Legion Token pool has been compromised by a Starter.xyz employee and all LGX tokens that should have been locked over 7 months, have been removed and sold on a decentralised exchange.
This is the claimed attackers wallet address: https://bscscan.com/address/0x283B3b8f340E8FB94D55b17E906744a74074cD07#tokentxns
This is the affected Starter.xyz pool address: https://bscscan.com/address/0xeffae503B6eA3cD2a61D20F71DE60BaE388Ed6A0
Starter.xyz have privately acknowledged this attack, and apologised to the Legion Network team, however they have intentionally decided not to formally update their own community, pool members, and the Legion Network community. This extremely selfish approach has allowed starter.xyz to continue business as usual and attract many other projects to their exploited services.
No offers have been made by the Starter.xyz team to co-operate with Legion Network to minimise the impact for the Legion Token. The Starter.xyz team insisted their pools are Certik Certified, however no audit reports have been shared.
“This lack of public transparency from the Starter.xyz team is awful, if we didn’t do our own checks they wouldn’t have mentioned it. It is extremely concerning especially when everything is already transparent on the Blockchain. We expect and demand a formal announcement from Starter.xyz regarding the Legion pool, and a message to all of the users who have had their funds stolen.” Athar Ahmed — CEO Legion Network
Legion Network offered to do the vesting multiple times for Starter.xyz, however they were adamant they lock in their own smart contract pool which we now understand was created by an employee who had previously been questioned for his integrity and honesty.
This explains the enormous selling pressure over the last week, and has caused an upset to our plan of a very controlled and gradual release for the Legion token.
The Starter.xyz team bizarrely explained they will not be making another announcement as this attack stems from a previous attack.
It is quite absurd that the Starter.xyz team has not addressed this at all publicly, and there are many signs of a potential targeted attack on Legion Network.
Legion Network is working extremely hard to minimise any impacts this has caused for the project and the Legion Token. Due to the non complicity from Starter.xyz, Legion Network has begun buying back LGX tokens that the hacker has been selling.
The Legion Network team has also decided to support and work hand in hand with those users who have been affected by the exploited pool on Starter.xyz, a channel for communication will be announced shortly.
Legion Network has been in touch with their legal team in order to take the necessary steps to hold accountable those responsible for the exploit and gross negligence.