DeviantCoin swaps blockchain after attack
Through the past two weeks, the Deviant team has been investigating a number of exploit activities that have taken place. It turns out the masternode code could be changed to exploit a bug on the blockchain reward system. About 200.000 DEV (~ $750.000) coins were stolen this way.
Exchanges were put on hold, preventing the coins from being transferred to other currencies. As a result of this the team decided to do a coin swap and burn the stolen coins.
The team has explained the situation and their approach very thoroughly on their Discord channel:
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.
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. The name of the coin does not change but it will use a brand new codebase and a new blockchain effectively rendering the hackers bounty worthless.
To address the exploited coins, we’re performing forensics on the blockchain up to the time of the exchange snapshot. We have already identified some big offenders and will use this time to sort through smaller ones that may have evaded gross detection.
Those offenders who purposely compiled their own wallets with the intent to circumvent the fair rules of the blockchain and unfairly adjust the rewards in their favor will have their accounts frozen. They will not be able to swap their coins. You may petition this decision if you are affected, but the evidence will be clear. Similarly, all wallets that participated in a scam and cheated coins from innocent users will also be confiscated if enough evidence is received from community members.
We don’t expect this will impact most accounts. It appears to have been concentrated to a few, but large, accounts specifically created for the purpose of exploiting holes in the reward payments.
For those who took advantage of the masternode payment issue:
Masternodes that were created after block 275000 (when the issue began) – if the masternode existed for more than 1000 blocks after creation, you can keep your reward. If the masternode was eliminated within 1000 blocks, the reward will be deducted from your swap payment. The confiscated rewards will be distributed equally to the masternodes that would have fairly obtained rewards after block 275000.
If you didn’t modify the source code to your advantage, you don’t need to worry. Your will easily be able to swap your coins when the time comes. And we are confident the new code base will provide a secure reward structure to allow us to move forward.
Some of the new features we will add with the upgrade is:
1. Brand new wallet and graphics.
2. DevX payments: Faster and quicker payments. Transactions will be confirmed and spendable within seconds, guaranteed by confirmations from the masternode network. No more need to wait for multiple confirmations to be confident in the validity of a transaction.
3. Throughput will be increased to 2000TPS. This will help with exchange related high volume transactions.
4. POS structure will do away with coin age ie. The rewards will be based on how often you are online, not just how long you’ve been holding coins. This will help with more available nodes online getting more rewards than those that open their staking wallets once in a while.
The entire process will take around 10days to complete, . You are requested to withdraw all your coins and consolidate your wallets during this period. We will be using a snapshot to verify your addresses.
We believe that this is the most responsible step given the circumstances. We look forward to your whole hearted support.