QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$1 105 000 USD
DECEMBER 2021
GLOBAL
BRINC FINANCE
DESCRIPTION OF EVENTS
Brinc Finance introduces $BRC, a bonding curve token designed as an alternative to volatile cryptocurrencies and opaque stablecoins. Unlike Bitcoin, which suffers from extreme price swings due to its lack of intrinsic value, or stablecoins like Tether that offer no growth potential and questionable transparency, $BRC offers a new model. It is 100% backed by on-chain reserves of BTC, ETH, or DAI, and operates with complete transparency, allowing anyone to verify the reserves at any time.
Brinc Finance solves the issues of crypto volatility and opaque reserves by using a bonding curve pricing model. Every purchase of $BRC through its smart contract increases the token’s price, meaning early adopters benefit from continuous upward price movement. This algorithmic pricing also ensures that the token’s value cannot fall below the amount of crypto held in reserve. The system guarantees that price discovery is built into the protocol and visible on-chain, giving users full insight and eliminating reliance on centralized trust.
The bonding curve approach used by Brinc differs from how it’s typically applied in DeFi for automated market making and liquidity pools, as seen with projects like Uniswap or Balancer. Instead, Brinc uses the curve to determine the intrinsic value of its native token, creating a predictable, transparent, and appreciation-oriented asset. Brinc Finance aims to redefine the way tokens are issued and valued in decentralized finance, offering a more sustainable and transparent alternative to fiat-pegged stablecoins.
"On Dec. 14th, 2021 UTC, a series of actions/transactions occurred, resulting in the loss of all tokens in the staking contract (BRC & gBRC)." "The only person within our team that had full authority over the staking contract, was our Head of Development."
"The attacker gained 292 ETH (worth over $1 million)"
"Brinc.fi worked with Certik to investigate the incident and prepared the following initial report.
After the exploit, [the Head of Development] hasn’t been responsive to our questions and investigations. As the Head of Development, he had the responsibility to keep the contract secure. After continuous attempts to establish contact with him since the event, he has chosen to get legal representation in the form of an attorney. We will be exploring all legal avenues to resolve this issue.
More urgently, we have removed his rights/permissions and blocked this person’s access to any of our code and internal information. Additionally, we will fix the security issues that have led to this event and will be including additional security measures. Until we do, staking on Brinc.fi will be disabled. Users who attempt to stake directly via the contract will do so at their own risk."
The Brinc.fi team suspected the former head of development, Daniel Choi, as the individual responsible for the exploit. Following the incident, Choi was unresponsive and retained legal representation, prompting Brinc.fi to pursue a civil case against him for theft and fraud. As of March 5, 2024, a deposition was conducted, but Choi did not answer all questions, and the deposition was adjourned due to his health concerns. The civil case remains ongoing, with Brinc.fi continuing its efforts to hold Choi accountable.
The Brinc.fi team reports a desire for users to be made whole. However, no concrete plans were ever proposed or implemented that didn't involve Choi returning funds.
While Brinc Finance appears to no longer have a website, Twitter, or active Telegram, they promised 'The team is committed to doing whatever we can to make it right. We’re not giving up on the project and our vision.".
Brinc Finance introduced $BRC as a transparent, crypto-backed alternative to volatile cryptocurrencies and opaque stablecoins, using a bonding curve model that increases the token’s price with every purchase and ensures on-chain reserve backing with BTC, ETH, or DAI. However, on December 14, 2021, the platform suffered a major exploit when over $1 million in tokens were drained from its staking contract, using private keys know by its Head of Development, Daniel Choi. After the incident, Choi became unresponsive, retained legal counsel, and was named in a civil case by Brinc.fi, which remains unresolved as of March 2024. Despite pledging to compensate users and restore the platform, no viable recovery plan materialized, and Brinc.fi has since gone largely inactive, with its online presence disappearing and its promises unfulfilled.
BrincFi - Rekt Cold Case - Rekt (May 14)
Brinc.fi Homepage - Archive December 9th, 2021 5:21:54 AM MST (May 14)
Transaction Transferring Ownership - Etherscan (May 14)
Brincx.io Homepage - Archive April 3rd, 2023 3:22:34 AM MDT (May 14)
Crypto Project Research : Brinc.Fi ($ BRC) - DigiCapital Research Institute (May 14)
Brinc_X New Twitter/X Account (May 14)
(Jan 16)
Brinc_X Telegram Channel (May 14)
BrincX Arbitrum Delegation Statement (May 14)
@intrinsic_fund Twitter (May 14)
@BoringSleuth Twitter (May 14)
@DigiCapitalKu Twitter (May 14)
Rekt News - "A backdoor function drained the @BrincFi staking contract in 2021. They allege an ex-dev, still active in crypto, was behind it. The funds vanished, the dev moved on - and the cold case still sits open, with users left behind." - Twitter/X (May 14)
Updates & Plans Moving Forward - Brinc Finance Medium (May 14)
Brinc.fi: $gBRC Recall & Refund - Brinc Finance Medium (May 14)
Brinc.fi: How to Bridge, Buy, Stake & Earn $BRC on Arbitrum L2 on Desktop & Mobile = Brinc Finance Medium (May 14)
Announcement: $BRC (L1) to (L2) $BRC Swap to Arbitrum - Brinc Finance Medium (May 14)
Exploit Post-Mortem - Brinc Finance Medium (May 14)
Theft Of BRC Tokens - Etherscan (May 14)
Theft Of gBRC Tokens - Etherscan (May 14)
Ethereum Price History and Historical Data (Dec 21)
Update: Daniel Choi Fraud and Theft Case - Brinc Finance Medium (May 14)
PACIFIC COAST CO. LTD. D/B/A BRINCFI VS DANIEL CHOI - Case 22TRCV00231 - Docket Alarm (May 14)
Brinc Finance - Defi Llama (May 14)
Brinc Finance - CoinMarketCap (May 14)
Brinc Finance Medium (May 14)
$BRC: Bonus Early Adopters Event! (May 14)
Best Defi Staking on Ethereum Layer 2 — Brinc finance $BRC - Brinc finance (✧,✦) - Medium (May 14)
The Brinc’ning: $BRC AMA & The Upcoming Launch (May 14)
Brinc Finance: The Bonding Curve Token Alternative to Stablecoins - Brinc Finance Medium (May 14)
