Crypto exchange Huobi Global released its side of the story, accusing pNetwork of making a $4.5 million profit from the recent pGALA crash, days after GameFi project Gala Games and decentralized finance (DeFi) protocol pNetwork assured its community that everything was alright.
A suspected attacker sold $2 billion worth of GALA tickers for $0.04 on November 3.
on BNB Smart Chain and sold some of the tokens on PancakeSwap, totaling 12,977 BNB BNB tickers down $338, valued about $4.5 million at the time. A PancakeSwap pool was drained as a result.
Lookonchain, a cryptocurrency analytics account, claims that some traders took advantage of the circumstance by purchasing GALA via PancakeSwap and selling the tokens on Huobi, driving down the price of the cryptocurrency exchange from $0.04 to $0.0003.
The Gala Games president for blockchain, Jason Brink, responded on Twitter to the community’s fears of a potential multi-billion dollar breach by assuring them that everything is alright and that the activity seen is just part of pNetwork’s attempts to protect its liquidity pool from flaws.
Huobi Global, a cryptocurrency exchange, has raised accusations against pNetwork, asserting that the protocol’s recent activity was not a white hat move. Huobi claims that the most recent event was a maliciously profitable plan. Additionally,
Furthermore, Huobi also made claims that the incident caused massive losses for its users. The exchange underscored that it is ready to represent the users who sustained damages from the incident and threatened to take legal action against pNetwork. However, if the alleged attackers are willing to return the proceeds from the attack, Huobi said that it will provide a $1 million bounty and will not pursue its legal responsibilities.
In response to the allegations made by Huobi, pNetwork officially responded, deeming Huobi’s allegations as untruthful. The DeFi protocol highlighted that they have definitive proof that pNetwork acted in good faith and all actions were done in collaboration with Gala Games. The firm also explained that it will seek legal action against Huobi for its allegations.