The 49% Shareholder Stole $ 6.6 M in Soarcoins From Its Partially Owned Company
The collaboration between Australian Byte Power Party and Singapore-based Soar Labs went wrong when the second one has withdrawn its money after acquiring 49% of shares.
It all started in June 2017, before Soar Labs’ ICO period. The Singaporean company was agreed to acquire 49% of the Australian Byte Power Party’s shares for $ 5 million. The payment was made accordingly, of which $ 100,000 was transferred in fiat currency, and the remaining $ 4,900,000 in the form of 306 million Soarcoins valued at $ 0.016.
A part of the tokens disappeared in January 2018
Everything seemed to be done correctly until part of the tokens disappeared in January 2018. According to the Soar Labs explanations, Soarcoins were suspended due to the high rate at which Byte Power wanted to sell them. Therefore, 179.2 million Soarcoins owned by the company and 34.6 million owned by Byte Power’s CEO Alvin Phua were suspended.
One month later, Byte Power filed complaints at the Australian Securities Exchange (ASX) on the grounds that $ 6.6 million worth of Soarcoins were extracted from the company’s accounts.
Soar Labs has retired the tokens, the CEO confirmed it
For privacy reasons, personal details haven’t been made public, however, Nicholas Weaver has identified that the Singaporean company might be involved in this case. Soar Labs has withdrawn the tokens by paying a zero-free commission, having the right to do it, as with any Soarcoins holder.
Soar Labs seems to have acted badly with the Singaporean company. The CEO has confirmed involvement in the withdrawal of the tokens, motivating that the code was accessible to anyone, while the responsibility for ensuring the Soarcoins security came to Byte Power.
Neo Wenyuan, Soar Labs’ CTO, claimed that the zero-free transaction wasn’t a backdoor and this is his explanation:
“The zero-fee transaction function, which is visible in the public source code, was developed for the purpose of airdrops, monitoring transactions as the developer of Soarcoin and future development activities such as payment interface with online apps.”
One month ago, Byte Power confirmed that it had ceased to work with Soar Labs, the latter reverting the purchased shares plus $ 1.7 million and 5 million Soarcoins as compensation.