For Immediate Release on Behalf of LQD and EIX on Nov. 26, 2015, 16:45GMT -
With sadness, I have a disappointing piece of news to release to LQD and EIX investors. On Nov. 25, 17:42 GMT, Mike and Mr. Slave's computers were penetrated via a Trojan back door program. For the next 3 hours, all of their forex accounts (personal and LQD/EIX) were traded to empty and all crypto accounts were emptied (assets sent to Genesis) or transferred away (Bittrex/Poloniex/etc.). The LQD forex account lost $21,970.20 and EIX forex account lost $6,863.45. Personally, Mike and Mr. Slave lost almost everything they had.
When this incident was discovered, Mike immediately contacted their brokers, but because the trades had already been closed, there was nothing they could do except investigate. This investigation is still pending. Today, Mike filed a report with the police department and was told that the organized crime department would also open an investigation.
After the hacker completed this malicious act, he left the message saying:
"You were right Mike, Trading is hard,but so much fun. I hope you and your slave boy can fix this... XOXO”.
We believe this was someone familiar with the NXT community and more specifically in Supernet Slack. If you recognize this style of writing or have any information on who this might be, please let us know.
The loss to EIX and LQD was both approximately 20% of total funds, so it’s not devastating, but will take a while to rebuild. Obviously, there will also be a loss of forex income as we decide what to do going forward. The rest of EIX and LQD funds are safe and business will continue as usual. Once I determine LQD’s new NAV, I will place a buy wall there for anybody that would like to cash out. LQD divs will payout as currently specified on http://liquidtech.info/summary
. Mike and Mr. Slave are trying to figure out the best way to get back on their feet and hope to repay as soon as possible.
Once again, please accept our sincerest apologies and we will continue to post updates as more information surfaces. Mike has delivered his computers to a friend who will be running analysis in an attempt to figure out the vulnerability.
All questions are welcome either here on nxtforum.org, or on Supernet Slack. We will be creating the Slack channel, “lqd-eix-forex-hack” to handle questions about this incident. Personally, I will be unavailable most of the day as I’m trying to celebrate Thanksgiving with my family. However, Coinomat, Mike and and Cassius will be available today, and most of us over the weekend. We will field questions as we can. In the spirit of transparency, we wanted to release this information as soon as possible.
LibertyNow, Cassius, Mike