RQBERT Attack Report & Compensation Plan
What happened and How we will move forward.
On Friday, February 11 at around 20:29 UTC a person dedicated to the execution of cybercrime perpetrated an attack on the RQBERT Native token built on the Binance SmartChain Network, which consisted in removing the liquidity of the pool in Pancakeswap, sending all tokens in the liquidity pool to the burning wallet, increasing the price of the token to $2400 and then selling a small amount draining the BNB in the liquidity pool.
The attack was perpetrated using an external smart contract that, when executed, activated a ‘SwapandBurn’ function, buying a small number of tokens, burning the liquidity in RQBERT and then selling them to remove the BNB. Immediately the attackers proceeded to swap the obtained amount of BNB to WETH via PancakeSwap and subsequently used CELR BRIDGE to bring the funds to the Ethereum network.
After the funds were placed in the Ethereum Network, attackers used Tornado Cash, a decentralized application designed to provide privacy protocols through which tokens are deposited from a specific address and are sent to a pool where they are mixed with other deposited assets and then the withdrawal option is enabled from a different address than the one used in the initial deposit operation.
Below, we attach the Transactions carried out by the attacker:
BINANCE SMART CHAIN:
- 188 BNB — $74,990.86 -> WETH 25.53
- TX Hash: 0x7b461f284d3f24019aee8f8b1541703d787cec2b90b500bfbeb8bb73657507b4 / 3 hrs 32 mins ago (Feb-11–2022 08:29:47 PM +UTC)
Converting stolen BNB to WETH:
- TX Hash: 0x24cf57a1cc9d492ac031c944668bb5e9317a25f5fd9c4a80c79ce0d9e6599dba
CELR Bridge ETH Transfer:
- TX Hash: 0x0231e54c3c162cca72ffce5a05c9af45c540f19003448001340e331fc680feb7
CELR Bridge all known addresses to track where the 25.53 ETH went:
Ethereum Network:
ETH Transactions sending from the CELR Bridge to another Attacker Wallet:
It should be said that all members of the Retro DEFI team are honored by the unmatched maturity and clarity of mind with which the entire community has assumed the events occurred and we are fully motivated and determined not to fail before the high esteem and confidence they have shown towards Retro DEFI and the work being done by us.
Based on the above, after a thorough analysis of each and every one of the options available to us to repair the damage caused to the RQBERT holders, the team has decided to conduct a compensation plan for the damage and also add a layer of diversification and increased decision-making capacity within the ecosystem through the implementation of the following compensation strategy that will be carried out in 4 phases:
- 1st Phase: Replenishment of 35% of the value of losses to RQBERT holders, considering the value of the token , amount of holdings and tax of RQBERT as before the attack, this compensation will be made through the RCUBE token using the team tokens. With this measure is intended to provide an asset of greater value, utility and stability given its deflationary characteristics, position as a Governance token, the utility it will have in our upcoming NFT game and the right to participate in decision making within the Retro DEFI Ecosystem. RCUBE will now be in the front of RetroFarms in the meantime and will be used in different staking pools as well as having his own special long-term compensation reward pool for those people affected by this attack.
- 2nd Phase: After the re-launch of RetroFarms and RQBERT V2, we will continue to apply mechanisms to remedy the damages caused to those affected by the attack on RQBERT V1, airdropping a percentage of the value of their losses according to the last price of RQBERT and value of holdings before the attack, allowing everyone to access again the high returns offered by RetroFarms.
- 3rd Phase: An exclusive NFT usable in Retro’s NFT Play To Earn Game will be granted to all those who have been affected as a result of the attack on RQBERT V1 and whose characteristics and value will be more than proportional to the size of the losses.
- 4th Phase: After the launch of our NFT game, we will airdrop those affected by the attack a % (TBD) in the game native token, allowing all people affected access to all the benefits that this new piece of the ecosystem has to offer.
With the application of these measures, we guarantee not only the compensation of almost if not more of the total value of the loss but also a greater presence within the Retro DeFI Ecosystem.
Finally, from the Development team we remain in permanent session to ensure that the community does not have to pay the consequences of this unfortunate event, we work under the philosophy of prioritizing the common good, generating effective and efficient solutions to this group of users and investors who have placed their trust in the Retro ecosystem. We invite you to be very attentive to the announcement of the steps to follow in each of the phases of compensation and the times that will be established since more updates are coming to our ecosystem with a planned RCUBE V2 launch and the replenishment of the RQBERT V2 liquidity pool overtime.