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Legal Statement Regarding Hacking Incident
LEGAL STATEMENT REGARDING THE HACKING INCIDENT OF BIGWHALE.IO Date: 8th October, 2023 I am writing on behalf of my client, BigWhale.io, an online cryptocurrency based decentralized finance platform, to provide a legal statement regarding the hacking incident that occurred on October 3rd, 2023. This incident resulted in the loss of approximately 7,200 Binance Coin (BNB), equivalent to approximately $1.5 million, which had been locked in the platform's smart contract by investors. We aim to clarify BigWhale.io's legal position and responsibilities in light of this unfortunate event.
- 1.Hacking Incident Overview: On October 3rd, 2023, BigWhale.io experienced a security breach (private key leak of a company Ledger wallet) in which unauthorized individuals gained access and compromised the integrity of our platform. As a result of this breach, approximately $1.5 million dollars worth of BNB were illicitly withdrawn and transferred from the platform’s smart contract on the Binance Smart Chain (Contract Address: 0x30054BB89EDD62F9A57E6d7F02bdff25Db30751e) We deeply regret the harm and inconvenience this incident has caused to our valued investors.
- 2.No Legal Liability for Refunds: BigWhale.io acknowledges the gravity of the situation and expresses its sincere commitment to resolving the matter as swiftly as possible. However, it is important to note that BigWhale.io does not bear legal liability to refund investors for the losses incurred unless the hacked funds are successfully recovered. The reasons for this stance are as follows: A. Force Majeure: The hacking incident can be categorized as a force majeure event, an unforeseeable circumstance beyond the control of BigWhale.io. B. External Attack: The investigation conducted by law enforcement agencies has concluded that the hack was not carried out internally or by BigWhale.io itself. The attack was executed by external parties with no affiliation to BigWhale.io. C. Statements from independent experts: In addition to the findings of local law enforcement agencies, two prominent online crypto intelligence and security companies, Certik and Cyvers, have publicly corroborated the reports regarding the highly coordinated and sophisticated nature of the hacking incident. These statements are available on X.com (formerly known as Twitter) and further support BigWhale.io's position that it was not involved in the hacking incident and did not act negligently. D. Liability Contingent on Fund Recovery: BigWhale.io acknowledges its responsibility to its investors and is committed to taking all reasonable and necessary actions to recover the hacked funds. However, it is important to emphasize that the recovery of these funds can be an extremely difficult and uncertain process. BigWhale.io is prepared to cooperate fully with any investigation and recovery efforts led by law enforcement and cyber intelligence agencies. Until such funds are successfully retrieved, the ability and the legal liability to refund investors remains contingent on external factors beyond our immediate control. Conclusion: BigWhale.io deeply regrets the loss suffered by its investors due to the hacking incident of October 3rd, 2023. The platform is committed to supporting the ongoing investigation and recovery efforts while emphasizing its lack of legal liability for fund refunds, given the circumstances surrounding the attack. We kindly request that this legal statement be considered in any discussions or proceedings related to the incident. BigWhale.io remains dedicated to maintaining the trust of its users and the integrity of the cryptocurrency community.