Private computing network Nillion explained that the sharp volatility seen in the NIL token price yesterday was caused by a market maker selling a large amount without authorization.
The company stated that the party in question did not respond to any communication from the team during and after the sale.
Nillion announced that it initiated a buyback process immediately following the incident, using funds from the treasury. It also stated that it had worked with exchanges to freeze accounts related to the sale and initiate legal action against the person or institution responsible.
The company maintained that such unauthorized transactions occur from time to time in the crypto space, but that they would not remain passive this time. Nillion also announced that any funds recovered from the unauthorized token sales would be used for additional buybacks.
NIL price has lost 36.3% of its value in the last 24 hours and is trading at $0.118 at the time of writing.
NIL broke its all-time high price record at $0.95 about 8 months ago and is trading 87% lower than that record level at the time of writing.
*This is not investment advice.