A few days ago the Cryptocoin Revival Foundation – a foundation that focuses on the revival of waning digital currencies – noticed a strange discrepancy in one of its recently adopted altcoins – Quarkbar.
Having taken over the maintenance of Quarkbar on April 18 this year, the CRF set about patching up the source code, releasing new wallets and taking over communications. Shortly after, take up of the coins resumed and Quarkbar looked set for a revival.
Concurrent to this process, the CRF also developed a block explorer – a tool that provides detailed information on a cryptocurrency blockchain concerning number of coins, transactions etc. The organization ran the block explorer on May 20, and found a coin count 15.5M higher than expected. In short, the developer had created a second batch of coins in the 1st block of the chain, with the intention of selling these coins as part of the original count.
Unfortunately for the scammer, the coin count was too high to sell, meaning they had to shift coins from one wallet to another and take their own explorer offline in order to avoid detection. This meant that the CRF was able to track close to 98% of the scam coins, and has now locked up the coins in a few blocked wallets.
So what happened to the scammer? Well, they sent 300,000 Quarkbar to an exchange, meaning the CRF was able to track him or her down and block his exchange account. All said, they lost the equivalent of 0.4BTC or $214 USD at today’s cross-exchange rate.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com