Incident: MetaNet ($MNet)
About the project
On 14 January, we got the first indications that the contract used had become a honeypot. The Smart Contract Security Audit was performed by TechRate, where is also described that this is technically possible. Later it still became a rugpull.
The price was stable at first, but the tokens were sold on 16 January.
The website only contains statements that it has been hacked.
We immediately tried to contact the founder, which was successful in the evening. There was also a statement in the official MetaNet Telegram group at that time, but it didn’t explain too much.
So basically we got hacked on our web and on the main pc where the contract was originally held we are trying our best to get everything back to normal as there is many reasons why we wouldn’t do such thing when we were about to get listed today on LBank and had a top10 exchange incoming later on tonight we will come back with an update.
According to the founder, the developer turned the contract into a honeypot by increasing the fees to 100%. Legal action is said to have been taken against the developer. The founder has also provided us with an official statement:
I apologize what happened with MetaNet, we are trying to solve this inernally, alerted the authorities and we already hired lawyers.
When I developed the concept of MetaNet, I was aware for the potential it has and I wasnt surprised with the growth. However for the developer and some of the team members got shocked by how far we went and their ambitions changed. They also got manipulated by my ex-partner who was forced to leave the project because he refused to get KYCED like me and take responsibility.
First they started by blackmailing me, then by neglecting their tasks and now it seems they installed some keyloggers and took over the project.
I apologize for what happened, even though my apologize doesnt solve anything. I also know you dont need justification, all you need is your money back.
However, MetaNet was never intended to end like this, otherwise I wouldnt attach my identity to it.
Those who undestand crypto tokens, they know that the stupidest thing to do in a project with this growth rate, is to manipulate it for some fast money and loose trust, at the very same day we were world top trending and were not going to stop.
In my sanity I’d never do that.
Marek Jansky, CZ
We remain in close contact with the founder and are also trying to get in touch with the founder’s lawyer to get an overview of the next steps.
The founder is located in Czech. Location of the developer is currently unknown.
Update 16 January
The liquidity was completely emptied with the unlocked tokens.
We are currently evaluating the money flow of both wallets.
Almost 3 million dollars worth of tokens were sold from these two wallets.
The money flow can be checked here
The money flow can be checked here
We are also preparing the legal action to hand over to our lawyer tomorrow and plan further steps. After the research, we are also trying to get support from Binance.
Update 17 January
We have contacted the highest authority of the Czech police to direct the incident to the right place. We have also contacted a Czech law firm that specialises in the crypto field. We are currently waiting for feedback.
If there are people who speak Czech as their native language and could help us with some translations to work more effectively on the incident, we would be very grateful. Please contact us at firstname.lastname@example.org
We had contact with Binance.
Most of the money was directed to Tornado Cash and deposited in 100 BNB blocks each. However, we were able to track the money flow to a wallet and subsequently contacted Binance.
This has now been blocked for the next 7 working days so that no transaction can be made.
Binance is now waiting for requests from official government authorities and can only then take appropriate action. This means that each investor is now responsible for reporting this to an appropriate body in their country and taking further action.
May you can use the Binance Case ID #82118063 as reference.
Here is the official statement from Binance:
Greetings from Binance security team!
First and foremost, we feel deeply sorry for your encountering and would try our best to help. Based on the given information, we have successfully located the suspect’s account with us, and have it locked for 7 business days.
To further investigate the case, according to our standard procedures, we require to collaborate with your local authorities.
Please know that Binance maintains a stance of cooperation with law enforcement authorities globally, should you wish to pursue an official investigation we encourage that you report this incident to the police.
The authorities can reach the relevant department by raising a ticket through this link: https://www.binance.com/en/support/law-enforcement from an official email address and attaching the following:
A. The photo, name, mailbox, and telephone contact of the investigating officer. B. It is necessary to issue an official document of assistance with an official seal; C. The letter should specify what information Binance needs to provide to cooperate with the investigation (such as providing account information corresponding to the xxx address, real name information, phone number, etc.)
If you’re based in Europe, we suggest that you visit the following link to report the incident: https://www.europol.europa.eu/report-a-crime/report-cybercrime-online
Kindly note that, once the officer has submitted the request, you will need to directly contact them for updates on your case. In fact, police enquiries are handled by a different dedicated team and not by customer support, and we won’t be able to disclose updates directly in chat.
We will fully comply with law enforcement upon receiving the above-mentioned documents. However, if we fail to receive the requested information within the next 7 business days, Binance cannot guarantee that the funds will not be transferred out from the suspect’s account.
Thank you for contacting Binance Security team
Update 18 January
Today we have received feedback from the Czech Cyber Crime Police. The request to the blockchain lawyers is still ongoing.
We will contact the German criminal police later today in order to proceed with an investigation via Interpol.
Dear Mr. Nielsen,
This is to confirm delivery of your e-mail message, subject of that: Reporting of Crypto Cyber Crime and sent from e-mail email@example.com.
Please be aware that your e-mail was delivered to International Police Cooperation Directorate of the Police Presidium of the Czech Republic. Nevertheless, only the police and/or judicial authorities involved in criminal proceedings can officially communicate to abroad or from abroad. No documents or information provided by private persons are accepted for any further dealing with.
Nevertheless, in case you dispose with any concrete information which could potentially establish any suspicion from committing of any crime or illegal criminal activities, please do not hesitate to approach personally police station in your country to submit criminal complaint. The official authority in your country then evaluates your complaint/report and if needed, they will communicate appropriate request via official police or judicial channels to the Czech Republic (e.g. via Interpol channel).
International Police Cooperation Directorate
Update March 2022
We have not received any feedback from the local authorities, nor have we been asked for any data information.