September 26, 2023 3:08 pm

Typo Moves $36M in Seized Juno Tokens to Wrong Wallet


URGENT: JUST 11 DAYS REMAIN TO HELP SAVE INDEPENDENT MEDIA & ANR, TO ENSURE WE ARE FULLY FUNDED FOR NEXT MONTH,SO LET'S CUT THE BS & GET TO THE POINT - WE WILL BE FORCED LAY OFF STAFF & REDUCE OPERATIONS UNLESS WE ARE FULLY FUNDED WITHIN THE NEXT 2 WEEKS - Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Typo Moves $36M in Seized Juno Tokens to Wrong Wallet

By Sam Kessler

Validators, developers and token holders grapple with who is to blame for the copy-paste error that moved the tokens to an address no one can access.

The Cosmos-based Juno blockchain continues to serve as a case study for the trials and travails of on-chain governance.

An unprecedented community vote last week was supposed to seize millions of dollars’ worth of JUNO tokens from the wallet of a whale (large investor) accused of gaming a community airdrop. Rather than send the funds to an address controlled by the Juno community, as originally planned, a programming mix-up sent the funds to the wrong address on Wednesday.

The promise of blockchain-based governance is that the will of a community is directly codified on-chain. In a world where “code is law,” a simple community vote should have been enough to move tokens from one specific blockchain address to another.

And yet, the failure of several human-controlled safeguards this week shows how code-centric governance has yet to live up to its heady promise.

Juno and the whale

Juno Proposal 20, which passed with overwhelming community support last week, revoked tokens from Takumi Asano, a Japanese investor accused of gaming the Juno airdrop to the tune of $120 million in February. It was the first major example to date of a blockchain community voting to alter the token balance of a single user accused of acting maliciously.

According to the community vote, Asano ran an exchange service that should have rendered his wallets ineligible for the so-called Juno “stakedrop,” which gave JUNO tokens to stakers on the Cosmos Hub blockchain.

After a delay of a few days, last week’s vote was supposed to automatically run code moving the “gamed” funds – now worth around $36 million – from Asano’s wallet into a “Unity” address controlled by the Juno community.

Things didn’t go as planned.

When the code was executed on Wednesday, a programming error ended up moving three million revoked JUNO tokens to an erroneous address on the blockchain where nobody – neither Asano nor the Juno community – has access.

Proposal 20: A copy pasta

Andrea Di Michele, a member of Juno’s “Core-1” founding developer team who goes by “Dimi,” told CoinDesk that the fudged transfer came as the result of a copy-paste error.

“When I gave the [Proposal 20] developers the address of the [Unity] smart contract, I pasted the address of the smart contract and just underneath put the transaction hash. But I didn’t write ‘the transaction hash is this,’ I just put the transaction hash,” Dimi explained.

According to Dimi, developers accidentally copied the transaction hash – which looked similar to the wallet address – rather than the address itself. As a result, the seized funds ended up moving to a crevice of the Juno blockchain where nobody has access.

Who is at fault?

Validators who deploy nodes to run proof-of-stake blockchains like Juno are theoretically responsible for conducting due diligence about on-chain upgrades like the one that came with Proposal 20. It is this disintermediated community of validators – not any specific developer – which is responsible for issuing blocks, securing the network and processing upgrades in a “decentralized” manner.

Of Juno’s more than 120 validators, not one appeared to notice that the Unity address was pasted incorrectly.

Daniel Hwang, head of protocols at stakefish, one of Juno’s validators, summed up his thoughts in a message to CoinDesk: “We f**ked up big time.”

Rather than the programmers who pasted the wrong address into the Proposal 20 code, Hwang said this week’s events were “more the fault of the validators” who ultimately executed that code.

“Devs can mess up … but at the end of the day there should be trust assumptions that cannot be relied on,” Hwang said. “Validators should have due diligenced for ourselves to actually check the code we’re executing and running.”

So what now for Juno?

The whale’s response? “LoL.”

Juno’s core developer team and the chain’s community are still intent on moving Asano’s funds into the community-controlled Unity contract rather than “burning” them unintentionally as Asano says might happen. (Asano previously told CoinDesk he will sue Juno’s validators should his funds get discarded rather than go to his supposed “investors.”)

As of now, the plan is to move the funds to the Unity address via an already planned upgrade to the blockchain. Instead of simply making code improvements, this upgrade will now rewrite Juno’s ledger so that the stranded funds are reassigned to Unity.

A vaguely worded governance proposal to green-light the upgrade, Proposal 21, includes lines that say the upgrade “[f]inalizes the Unity proposal fund transfer” and “[r]elocates the funds from a placeholder address to the Unity smart contract.”

Proposal 21 looks on track to pass, and it’s hard to imagine validators, developers and Asano won’t be triple-checking the code this time around.

Another bump in the road

While Juno has attracted significant support from the Cosmos blockchain community, this is just the latest in a series of setbacks for the project.

After a community vote first moved to revoke Asano’s tokens in March, a mysterious smart contract attack pulled the chain offline for several days in April. Over the past two months, the JUNO token price has declined from a high of around $40 to about $10, which is where it sits today.

Editor’s Note: 

New Global Currencies

New Resistance Global Currencies that support Independent Media and are against the “Great Reset” –

Our World Coin, a force for good and a peaceful revolution, is built to save humanity from the Globalists deadly Great Reset Totalitarian Agenda.

Bitcoin 2.0 is a new cryptocurrency that is looking to innovate the Global Payment System. It is backed by real value in independent media news sites & networks.

Truth Coin, a platform that’s free from Globalists’ control, and will not support the Great Reset Agenda or the vaccine digital passport. This enables everyone to support and benefit from building a better world, by the people for the people, a force for good.

Opinion pieces don’t necessarily reflect the position of our news site but of our Opinion writers.

Support the ANR from as little as $8 – it only takes a minute. If you can, please consider supporting us with a regular amount each month. Thank you.

Related News

Subscribe for free to our ANR news emails and access 2 free ebooks plus Reports to share with family and friends about Covid fraud and the danger of the vaccines.

Australian National Review is Australia’s first real free and independent press, one with no editorial control by the elite, but a publication that can generate critical thinkers and critical debate and hold those spreading mistruths and deliberate propaganda in mainstream media to account.

News with a difference that will be educational, compelling and create a platform for political and social change in this country and address the real issues facing this country and the world.

Watch Full Documentary


Sadly, less than 0.5% of readers currently donate or subscribe to us But YOU can easily change that. Imagine the impact we'd make if 3 in 10 readers supported us today. To start with we’d remove this annoying banner as we could fight for a full year...

Get access to TruthMed- how to save your family and friends that have been vaxx with vaccine detox, & how the Unvaxxed can prevent spike protein infection from the jabbed.

Free with ANR Subscription from $8