An agreement between the Australian Company Byte Power Party and Singapore’s Soar Labs company went south when millions of Soarcoin trademarks disappeared. Soar Labs tried to buy a Power Byte stake without paying for it.
It all started in June 2017, one month before the Soar Labs ICO. Byte Power announced that the Singapore company would acquire a 49% stake in exchange for 5 million dollars. Soar Labs paid a total of 100,000 USD in fiat and sent 306 million Soarcoins worth 0.016 USD to cover the rest.
It did not look friendly and kind until much of the tokens were suspended in January. Soar Labs said digital assets were suspended because Byte Power is trying to sell chips at mad rates to pay off existing debts. A total of 179.2 million Soarcoins owned by the company plus 34.6 million held by Alvin Phua, CEO of Byte Power, were frozen.
In the following month, Byte Power complained to the Australian Securities Exchange (ASX), worth 6.6 million dollars, Soarcoins being withdrawn from electronic wallets.
Although public authorities have not released information, Nicholas Weaver has found a backdoor in Soarcoin smart contract. The code allows the issuer to call his chips back to a zero-rate transaction rate. Not only did Soar Labs do this with the Byte Power token, but they also have the power to do this to any chip holder.
Soar Labs CEO Seth Lim did not deny the existence of the backdoor. He said the code was available to anyone, and the responsibility of Byte Power was to revise it.
Neo Wenyuan, the Soar Labs CTO, explained why the zero-point transaction is not a backdoor, saying:
The zero-point trading function, which is visible in public source code, was developed for auction purposes, monitoring transactions as a developer of Soarcoin and future development activities, such as the online application payment interface.
Byte Power announced last month it had reached an agreement with Soar Labs, breaking the previous arrangement. The Singapore company will now redeem the shares it has bought and will also pay a compensation of 1.7 million and 5 million of Soarcoin’s. Both companies will return to independent operation.