1.Event Description
On August 21, 2021 at 4:49 pm UTC, hackers premeditatedly attacked our game server and bypassed the private key authority through technical means to transfer 8,911,679.5275 LG originally locked in the NFT mining pool address (0xf96c40927a9ca6d8c08cf06c36a6db785054f142) to the hacker address (0x7fec1a58878be40bba0dbfe8c193c5beff5d6c98). The hackers then sold 4,243,999 of these LG and exchanged them in batches for a total of 1,527.9221 BNB, causing a significant drop in LG prices.
After the incident, we immediately issued a notice asking users to stop buying LG, and teamed up with security audit company PeckShield and industry partners to track the stolen funds. Through tracking, it was found that the hacker transferred the BNB out in batches and after several transfers, finally transferred to the address 0xa305fab8bda7e1638235b054889b3217441dd645.
After data comparison and analysis, it is determined that this address is the ChangeNow token exchange platform. Then we quickly contacted ChangeNow to try to freeze the hacker’s assets and filed an alarm. Up to now, we are still communicating with ChangeNow and the police. If there are further conclusions, we will announce them in the community in time.
Important Reminder: Do not buy or sell LG before the game resumes. Do not perform any operations in the game!
2. Solutions
Due to hacker attacks, a large number of LG tokens were stolen, and there are still a large number of LG under the control of hackers. The old LG tokens are no longer safe. After careful consideration, we made the following decisions:
◆ We will create a new LG token contract (the name of the new token is undetermined, hereinafter collectively referred to as NEW_LG). The original LG token contract will cease to be used immediately.
◆ We will take a snapshot of the asset data at the time of the attack, and convert all users’ assets into new tokens for airdrop compensation.
◆ The game enters the maintenance state, and some functions are forbidden to use. After the code safety check is completed, the operation will be resumed again. The new NFT-GODS game will use newly issued tokens.
◆ The team took out USDT and NEW_LG from the developer’s fund, provided USDT/NEW_LP fund pool with liquidity worth 1 million U.S. dollars, permanently locked in and did not participate in LP mining.
◆We will expand the number of members of the security technical team and immediately conduct a thorough security investigation on server security and contract code. At the same time, a security bounty fund with an initial prize pool of 100,000 U.S. dollars will be set up to give bounty rewards to those who discover potential security vulnerabilities.
3.Compensation principles
Since there are many types of user assets and the number changes are complex, we may not be able to restore 100 percent of user assets as they are. But we will count the assets as detailed as possible and do our best to make up for everyone’s losses. The main principles are as follows:
◆ The compensation asset is NEW_LG. No matter what kind of asset the user owns, except for the god card, it will be combined and converted into NEW_LG for compensation. The compensation method of the god card is still the god card.
◆ We will give priority compensation to users who submit the form. Users who have suffered losses should fill in and submit the form as soon as possible.
◆ The snapshot time is UTC time: Aug-21–2021 04:49:55 PM. Purchased assets, sold assets, and new gains after this time will not be included in the compensation.
◆ The verification of user assets and the compensation of new tokens will take some time and is expected to be completed within 1–2 weeks.
◆ Scope of Counted Assets:
LG: Wallet LG balance, unreceived LG income, LG that has been released or to be released after card slot upgrade or card decomposition, LG that has not been withdrawn in the trading market, LG that has not been issued by event airdrops;
USDT/LG LP Token : LP Token staked, LP Token that has not been dismantled after the pledge was cancelled;
Cards: Cards in the backpack, cards staked, and untraded cards in the trading market.
4.Asset value calculation methods
◆ LG Value calculation: According to the actual LG balance statistics, the part bought or sold after the attack is not counted.
◆ LP Token Value calculation: The value of the USDT/LG LP Token is based on the LP held by the user (including LG and USDT) at the time of attack, and is all converted into LG for compensation, that is, the number of LG paid is twice the actual number of LG in the LP. The number of LP Tokens in the pledge can be queried in the “My Pledge” section of the liquidity mining interface.
◆ Card Value Calculation: No matter how much LG is spent when drawing a card, the value of the card is calculated according to the number of LG staked in the card. Gray card 1LG, white card 5LG, green card 10LG, blue card 20LG, purple card 40LG, orange card 80LG, gold card 300LG. Among them, the purple card, orange card and gold card will be given extra compensation of 5 percent , 10 percent, and 20 percent of the original value of the card due to its extremely high rarity.
◆ Dispute Settlement: If the user encounters special circumstances in asset disposal and has objections to the final statistical results, as long as the compensation principle is not violated and the requirements are reasonable, the user can send an email to submit a dispute settlement application.
5. Added Liquidity Description
◆ We will provide the USDT/NEW_LG liquidity pool with a total value of 1 million U.S. dollars in liquidity based on the initial price of LG10U (take the average price in the week before the attack).
◆ In order to ensure the interests of long-term investors and ensure a stable increase in the depth of the fund pool, USDT/NEW_LG liquidity funds will be added in three stages: the first addition of 500,000 US dollars, the addition of 250,000 US dollars a week later, and the addition of 250,000 US dollars after two weeks.
◆ The exact time of the increase in liquidity will be announced through official channels after the completion of asset statistics and security inspections. Please pay close attention.
6. Answers to common questions
Q: How to fill in the number of god cards?
A: Note the number of god cards in the last item of the form.
Q: I paid a high price to draw out low-quality cards, why not calculate the value based on the LG consumed?
A: There is luck in blind box drawing. Someone draws low-priced cards, and correspondingly some draws high-priced cards. The card value cannot be calculated based on the LG consumed.
Q: I upgraded the card slot with a card. Will the destroyed card be counted in my assets?
A: In the decomposition process, the LG pledged in the card will be returned. So it is calculated based on the LG to be released, not based on the value of the card.
Q: Why are the buying and selling after the attack is not paid?
A: After being attacked, we have warned everyone not to buy tokens on Twitter for the first time, and you should buy and sell at your own risk. It would be unfair to real players if the seller who stopped the loss or the buyer who bought the bottom at a low price can still get LG compensation.
