# 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 As a result of this breach, approximately $1.5 million dollars worth of BNB were illicitly withdrawn and transferred from the platform’s smart contract on the Binance Smart Chain (Contract Address: 0x30054BB89EDD62F9A57E6d7F02bdff25Db30751e) We deeply regret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. # Regulatory Compliance Notice (TSSB & BCSC) **BigWhale.io and its parent company, along with their affiliated business process outsourcing partners and outsourced staff, have been served an urgent** [**Cease and Desist Order**](https://ssb.texas.gov/sites/default/files/2023-10/ENF_23_CDO_1876.pdf) **from the Texas State Securities Board (TSSB) (Order No. ENF-23-CDO-1876 Dated 4th October 2023) and an inquiry request from the British Columbia Securities Commission (BCSC).**\ \ **In accordance with the official notification issued by the Securities Commissioner of the State of Texas and the TSSB, BigWhale.io hereby acknowledges its immediate and complete compliance with the Cease and Desist order from the TSSB and its commitment to full cooperation with the BCSC.** **Within two days of receiving the notice from the TSSB, dated 4th October, 2023, BigWhale.io announces the immediate cessation of all operations, effective immediately, and the discontinuation of services to customers in both the United States and Canada.** **Furthermore, in light of the aforementioned regulatory orders, both BigWhale.io and its parent company are terminating all operations indefinitely, with no intentions of relaunching or resuming business activities at any future point.** **It is important to note that BigWhale.io has always maintained that investors invest no more than 5% of their savings in our protocol, or any other protocol, and that crypto or DeFi investments, or any market investments in general carry at least some degree of market risks and had published this disclaimer on its website and in other forms of communication since the day of its inception, a perspective that aligns with the observations made by Joe Rotunda, Enforcement Director at the Texas State Securities Board.**\ \ **Once again, BigWhale.io and its parent company emphasizes a full compliance to the aforementioned regulatory orders, and we hereby agree to cease and desist all operations as a company permanently.**\ \ Related Links:\ \ # Hacking Incident ## Here is what happened. In an unfortunate turn of events, BigWhale.io experienced a [security breach](https://twitter.com/CertiK/status/1709245532667789502) that resulted in the unauthorized access and theft of 7000+ BNB from its smart contract on October 3 2023, 5:01:14 UTC (roughly worth $1.5 million as of the time of attack) due to a private key breach. Upon discovering the breach, we promptly initiated contact with Solidproof.io, our KYC auditor. Solidproof.io subsequently notified its security partner, Cyvers, a leading Web3 security firm renowned for its real-time threat detection and expertise in hack investigations, among other services. In a timely manner, Certik, our smart contract auditor, also extended their support for the ongoing investigation. Cyvers has made significant findings concerning the movement of the compromised funds. Concurrently, we have reported the breach to our local law enforcement authorities, who are actively investigating the matter and liaising with Binance on our behalf.\ \ **Links to investigation reports:**\ **Certik**: \ **Solidproof.io**: | \ **Cyvers**: \ \ **Other links:**\ [**BigWhale.io Smart Contract**](https://bscscan.com/address/0x30054bb89edd62f9a57e6d7f02bdff25db30751e) (Smart contract is paused until further notice.)\ [**BigWhale Official Telegram Community Chat Group**](https://t.me/bigwhalechat) (@BigWhaleChat) - \ [**BigWhale Twitter**](https://twitter.com/bigwhaleio)\ [**BigWhale Dune Analytics**](https://dune.com/mccrypto/bigwhale/80aa7284-72e7-4453-9f9c-f906a201fdd8) ***