In late November last year a new ERC20 altcoin called Monero Gold (XMRG) arrived to the crypto scene and launched their first smart contract. The Monero Gold team described their project as the first ERC20 token that would be used for purchasing and selling of goods, services, and more. Their white paper actually didn’t state too much about the project, just some basic explanations about block chains and the Ethereum network. Their whitepaper was honestly enough to set off red flags alone. Let alone being called Monero Gold while being an ERC20 token (which Monero is not) and having no association with Monero.
Their white paper did break down the token details with a total supply of 2,000,000 XRG (listed and mostly known as XMRG) broken down into 500,000 XRG held by team as well as another 500,000 for airdrops. An ICO supply was offered for the remaining XRG at 1,000,000 available for sale.
Well as anyone can clearly see by visiting their now defunct website, the boys at Monero Gold have been running and scam and just made their exit.
The jig was up when Coinexchange, the only exchange that actually listed Monero Gold (also questionable of Coinexchange), decided to halt the Monero Gold market. The exchanged became aware that a large number of XMRG coins had been created and transferred into the deposit address of a Coinexchange user. Shortly after, a large percentage of the coins were dumped onto the market.
The Coinexchange was able to determine that the developers of Monero Gold was responsible in the most simple way possible when it comes to blockchains. Follow the path.
1 — The XMRG token was created by the following Ethereum address: https://etherscan.io/address/0x70c17961abaaa470a2629825de50475fe4d8ab9d
2 — The XMRG token creation (by the address above) txid: https://etherscan.io/tx/0xbda1e865fcaa7ee5bb709f6b829cc9532a8062b1ebc9b50af8c8491476b1a075
3 — The same address was also resposible for the recent creation of a very large number of tokens, please see the following transaction: https://etherscan.io/tx/0xd1955ccec2f0e7a9a86c8dd4b9161265b0348fb3c7436a98e107c68e381c76ac
It appears a whopping 1,157,920,892,373,160,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000.29639934 were created through an exploit in the code. Monero Gold was built with a Burn function as many tokens also have in order to remove tokens out of circulation. In simple terms, the Burn function added by the developers had integer limits that are only able to have positive values. The devs then decided to burn more than the limits allowed which in turned made the integer value go below 0, which then makes it automatically reset to the highest value possible, since there is no such thing as -1 supply.
After the devs created trillions in supply, they moved a good amount to Coinexchange and started unloading, which obviously tanked the price. This prompted Coinexchange to halt Monero Gold, and the Monero Gold team to exit.
Forunately, Coinexchange offered amends by taking the remaining Bitcoin in the Monero Gold developer’s account and will be used as a buy wall so victims of the scam can sell as much as possible before XMRG is delisted forever. They have also included all fees including a 2 BTC listing fee that XMRG team paid to the buy wall.
The total amount in the buy wall will be:
22.418 BTC — Remaining BTC in Monero Gold developers account
2 BTC — Listing fee
1.475 — Total trades fees to date including BTC and ETH markets
— — — — — —
Total 25.893 rounded up to 26 BTC
Coinexchange remains that they too were also a victim and had no idea this was coming.