Unfortunately, there has been a theft of NuShare holder funds stored at SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv. I have failed to secure them. It has become obvious that I should no longer hold keys to shareholder funds. Accordingly, I have already transferred all NuShare holder NSR, US-NBT and CN-NBT to Esko Esko, Vice Chief of Liquidity Operations. He has a consistent and long record of holding and transferring shareholder funds securely. At the moment, I don’t hold any NuShare holder funds and do not intend to ask to do so in the future.
It is believed the compromise occurred at the same time as the last one. A particular VPS thought to be compromised had at one point had this shareholder wallet on it. This knowledge only came to light after the theft was discovered. I had mistakenly believed this shareholder wallet had never been used on the VPS thought to be compromised in connection with the compromise of the sigaint email service some time ago.
I have worked very hard to make Nu a success, so the knowledge that I have contributed a great deal to its recent problems is quite painful for me. It certainly wasn’t what was intended. I have always tried to establish and defend the integrity of the project, and the technical and inadvertent mistakes I have made handling funds have undermined this important effort.
Quite reasonably, there will be suspicion that I stole the funds. I need to say clearly that I did not steal the shareholder NSR at SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv, though I deeply regret this isn’t obvious. In my defense, I sent about $600,000 worth of US-NBT and CN-NBT to Esko after we learned of the theft, demonstrating my good will.
The theft, which has taken place over a period of time of about the last week, has resulted in a temporary cratering of the NSR price. Stolen funds appear to have been sold at Alcurex at a rapid rate. It appears most have already been sold. Therefore, I expect a reduction in the rate at which NuShares are being brought to market for sale. The change should give NuShares a chance to rise again, as it did just before the Poloniex delisting announcement, and as it did again just before this latest theft. We have something valuable here, and the market has confirmed this twice in the past two months with large surges in the NSR price. Our strongest price surge even happened after the Poloniex delisting. We are doing something innovative and valuable here, and there is some recognition of that. NuShare buybacks are currently occurring at a rate of $698 per day, which is a very large figure next to our market cap of only several hundred thousand. Therefore, despite this setback, I am optimistic that NSR pricing will improve a great deal, and likely soon.
I am very sorry and I feel deeply ashamed that I have allowed the interests of the Nu project to be undermined with the way I secured shareholder funds. The situation is contained, as I no longer hold NuShare holder assets. It can’t happen again. I came here to prove the Jordan Lee liquidity engine works reliably to secure a peg. I have proven that. I came to restore NSR buybacks. I accomplished that. Therefore, it makes sense for me to continue to step to the side and let others begin to play a bigger role.
Finally, I have supported moving handling to multisig addresses. I had discussed and arranged very specific plans to transition to multisig addresses in the days just before the Poloniex delisting announcement. Plans were put on hold due to the delisting. When the price once again rose a little more than a week ago, I once again resumed moving forward on those plans. It wasn’t quite soon enough. As those familiar with our history will know, major problems with multisig handling can and have occurred, so it must be done carefully. I expect that this effort will continue to move forward, though it is fundamentally a matter for Esko and shareholders.
it is hilarious.