Dear Avaxtars Community,
On 07.03.2022, around 06:00 UTC, 38,423 AVXT Tokens were seized by a malicious person using a vulnerability in our backend system. We would like to emphasize that, unlike the attack on 07.01.2022, the incident had a much more complex technical structure and the attacker was much more professional.
We would like to point out that this incident happened despite all the experience of Avaxtars technical team, dozens of precautions we took after the first incident, and our backend codes have been audited before.
We would like to point out that the unique experience we want to offer to the entire Avaxtars community and the innovative elements we have developed so far have unfortunately caused this unforeseen situation.
Required precautions have been taken by our technical team to detect the vulnerability in the system and not to reuse the same vulnerability.
Although the attacker liquidated 17,838 of his AVXT tokens in the pool on Pangolin, unfortunately he continues to keep 20,585 tokens in two different wallets. We are aware that this action continues to pose a risk to AVXT token price.
The IP address of the malicious user, the e-mail addresses and the transaction records have been detected. It will be shared with the competent authorities immediately and the official process will be started.
As a result of the evaluations we made as a team, we decided to take the following steps and started to take actions.
- Snapshots of AVXT token holders have been taken as of the moment we decided on the steps to be taken.
- Excluding the wallets used by the attacker, wallets belonging to the team and exchange wallets, the percentages of all wallets are determined according to the current amount of AVXT they have.
- The seized tokens (38,423) account for approximately 3.84 percent of all AVXT volume (1,000,000).
- First of all, 5 percent of the value Avaxtars creates (Marketplace transactions, new sales on other platforms and all other activities) will be shared among the wallets on the Snapshot.
- With the steps to be announced in the future, a total of 25 percent of the project will be distributed gradually to all existing and new investors of AVAXTARS.
- The details for our new governance model will be shared separately in the upcoming days.
- All NFTs of the Crypto Mandala project that have not been sold yet have been removed from sale by the team. One of each will be distributed fairly to the wallets in the snapshot list and the rest will be burned. Thus, the value created by a side project, Crypto Mandala, will be distributed to the existing ecosystem.
- We hope these steps will minimize the market impact of the 20,585 AVXT tokens held by the attacker.
- As the Avaxtars team, we would like to state that we will take new steps as we deem necessary.
We are deeply sorry because of this event but we have no doubt that we will overcome it with the Avaxtars Community.
We would like to state that we will continue to work hard for our project and will share the value with you more since it is created by you.
Thank you for your support during these difficult times.
AVAXTARS Team
