THE LCX HACK: HOW DGMV HAS BEEN IMPACTED
We’re all about keeping our community informed here at DigiCorp Labs, so we wanted to share an important update with you.
WHAT HAPPENED AT LCX?
As many of you know, in January 2022, LCX, the regulated cryptocurrency exchange handling our ICO, experienced a major hack. The hack resulted in the equivalent of almost 8 million USD being stolen from one of its hot wallets.
Following the hack, LCX proceeded to distribute all DGMV tokens to investors. DigiCorp Labs accepted a later payout of the raised funds, in order not to risk the day-to-day operation of LCX. The remaining payment was required to be settled no later than March 4th, 2023.
HOW DOES IT IMPACT DGMV TOKEN HOLDERS?
More than 50% of the ICO raise, valued at 4.8 million USD at that time (after deduction of fees), comprised the aforementioned payout agreement.
Regrettably, LCX has currently only paid one minor tranche of the payout agreement. The outstanding payment has yet to be paid.
Despite the legal requirement for LCX to hold customer funds in separate wallets, the exchange has not disclosed the whereabouts of the funds during the hack. This is the underlying cause for which we have not yet been able to assess the impact on DGMV investors resulting from the breach.
HOW ARE WE TAKING ACTION?
The absence of resolution, response, and information from LCX has compelled us to escalate the matter legally. As such, the Liechtenstein Financial Market Authority (FMA) has launched an investigation into the case, which we hope will establish fairness and accountability.
At DigiCorp Labs, we believe that transparency and adherence to regulatory standards are paramount. This involves updating any new material facts in an addendum to the basic information, in line with Article 34 of the Liechtenstein Blockchain Act (TVTG).
Transparency and clarity, as provided by the regulatory framework, are essential for all DGMV token holders and buyers.
We have outlined additional information in a document, entitled ‘Addendum Basic Information’. LCX was formally requested to publish this information in July 2023, but despite our request, has still not done so. As we’ve not been able to resolve things with LCX promptly, we have initiated additional legal proceedings.
ONWARDS AND UPWARDS
We will continue to provide community updates to keep you informed as the legal process unfolds. Our ultimate goals will always be to achieve justice and keep your rights protected.
Our go-to-market plans might have been delayed by ten months, but we remain proud of our ability to transform this setback into an opportunity.
The launch of a new DigiThree website is underway, showcasing new core products and enhancing accessibility for potential clients.
With the right resources, funds and guiding vision, DigiCorp Labs has both navigated this challenge and progressed our product development significantly – a milestone that marks the beginning of our token utility and community growth phase.
We extend our heartfelt appreciation to the venture capitalists and family offices within our network, who have contributed approximately 90% of the total funds raised. Your invaluable support and understanding amid the challenges posed by the LCX situation are deeply appreciated.
With numerous positive developments on the horizon, we’re now fully equipped to embark on our decentralized journey together – and we couldn’t be more excited.
Our dedication to the shared goals and wellbeing of the DGMV community grows stronger every day. We believe wholeheartedly in our collective power, and our sights are firmly set on a brighter, more secure future.
Media inquiries or community questions regarding the LCX situation? Drop us a line at [email protected] and we’ll do our best to help. Additionally, community questions will be curated for our upcoming AMA, where we aim to address concerns transparently and comprehensively.
This communication is for general information purposes only, and not intended to be legal advice. It therefore should not be taken to instigate an attorney-client relationship between sender and recipient. Any reliance on this information is at the recipient’s own discretion and risk. For specific legal concerns or advice, please seek qualified legal counsel. The sender disclaims all liability in respect to actions taken or not taken based on any or all the contents of this communication.*