Huobi and the pNetwork Team clash over a GALA coin smart contract vulnerability following a white hack execution by pNetwork that resulted in losses for the exchange.
Huobi Count Losses via pNetwork Issues
Huobi allegedly suffered significant losses after pNetwork executed a white hack attack without informing the exchange in time. pNetwork acknowledges using white hat attacks to thwart malicious intruders from draining the funds.
Huobi asserted claims that pNetwork prepared and planned the vicious attack and that failing to contact Huobi in time was strategic to lead to the draining of the exchange’s funds.
pNetwork published an article on Medium explaining what ensued leading up to the white hack attack. On the publication, pNetwork claimed to have contacted Huobi asking the exchange to suspend all BEP20 transactions, including deposits and withdrawals of GALA coin.
However, according to the blog, pNetwork’s communication was ineffective and was not acknowledged by the exchange.
pNetwork wrote on Medium:
“In the interest of time, the pNetwork team makes contact with Huobi Global, citing the emergency and that there was the need to suspend BEP20 deposits, but as was ascertained later, the commutation turned out to be ineffective. The pNetwork team had not previously been in contact with the Huobi team about the GALA listing but used a separate point of contact to communicate with the exchange.”
How It All Begun
PGALA is a tokenized form of GALA token in the BEP 20 form. Initially GALA token existed in ERC 20 form. Hence pNetwork created pGALA to make the token compatible with various blockchain networks, including the BSC network (Binance Smartchain). pGALA is issued in the ratio of 1:1 against GALA tokens.
pNetwork noticed a vulnerability in pGALA’s ownership smart contract and immediately secured pGala on the ERC 20 (Ethereum). The network then contacted GalaGames about the vulnerability and proposed a white hack attack to prevent a leak from taking place on the smart contract.
The two parties then reached an agreement that the hack was going to be executed. pNetwork contacted Binance and Huobi exchanges to inform them of the vulnerability, the possible white hack solution, and finally, a call for the exchanges to suspend all deposits and withdrawals of the GALA token.
Huobi Left Behind the Scenes
Binance acknowledged the information and implemented the transaction freeze. During the aftermath, pNetwork stated on Medium that hackers stole no funds. However, Huobi exchange never acknowledged receiving the information and executed the transaction freeze.
The exchange was allegedly caught up in the frenzy as GALA price (supported by Huobi) plummeted 20% during the pNetwork hack. As a result, Huobi swam in massive losses.
Angry Huobi consumers went on social media to display their concerns about GALA. One particular user named painkiller caught the attention of many on Twitter after being caught up in the panorama of events. The fan stated that he had bought GALA 12 hours before his holdings were converted to an alleged meme coin named ‘pGALA’.
Painkiller stated in the Tweet:
“Wow amazing day! I buy GALA 12 hours ago at huobi. But Huobi said it is pGALA. Suddenly Huobi suspended GALA/USDT without announcement.“
pNetwork finalized their medium post by stating that, based on the quantity of worthless pGALA held at the moment, customers will receive BNB tokens recovered via the white hat pool draining.
Source: https://crypto.news/huobi-exchange-in-huge-losses-after-pnetwork-delays-the-white-hack-attack-communication/