SolaKnights Rug Pull Equivalent_Toe5454

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SolaKnights Homepage

This is a global/international case not involving a specific country.

About SolaKnights

Solaknights was an open-world MMO reportedly inspired by games like Breath of the Wild, Shadow of the Colossus, and Dark Souls. The SolaKnights project featured NFTs minted on the Solana blockchain and was promoted in late 2021.

It appeared to be a highly ambitious NFT project focused on creating visually stunning characters, an engaging game, and building a strong community. It reportedly integrated the blockchain NFT characters with Unreal Engine 4/5. By owning the 3D versions as NFTs, you would be able to connect your wallet and use skins, animations as emotes, and all the equipment in the upcoming game. SolaKnights included well-designed and modeled 3D characters, resembling Pokémon, referred to as "pets" or companions that can be obtained through hatching eggs.

There were reportedly a total of 20,000 characters available to be minted, with 10,000 being Solaknights 2D and the other 10,000 being Solaknights 3D. The color backgrounds of the characters would be determined by their rarity. Heroes within the game had different rarities, categorized by their color: common (green), rare (blue), super rare (red), epic (purple), and legendary (orange). Additionally, there were artifacts represented by the color pink, which appeared likely to play a significant role in the game. The 3D characters were reported to have animations, such as the SolaKnight Welcome Warrior.

A trailer shown in a video provided a glimpse of the gameplay, showcasing characters running and engaging in battles, including strong graphics and visuals. Each Solaknight character was to be randomly generated on the Unreal Engine daily until reaching 10,000 for both 2D and 3D versions. The pricing of rare items was reportedly programmed to increase according to Fibonacci levels.

The project highlighted plans to create a revolutionary game and bring heroes from different realms. The project's roadmap included a plan to reach 100,000 members in their Discord community before moving forward. Community members were encouraged to support the project by following them on social media and helping the community grow.

NFT Solana Calendar Webstie

From the NFT Solana Calendar website, the mint was available on October 2021. The NFTs were reportedly available on the NFT marketplace solanart.io.

There will be a total of 20,000 characters minted. 10,000 will be Solaknights 2d with colored backgrounds that are determined by rarity, and the other 10,000 will be Solaknights 3D, which all come with an animation such as our Solaknight Welcome Warrior (Available when Metaplex’s Buy Now capability is released! ). We are going to do environment / accessories as well.

"To progress the completion bar and receive rewards such as 3x airdrops, collaborations with four players, solo demos, and $Solaknight token airdrops, you can mint more Solaknights.

There will be a total of 20,000 characters: 10,000 Solaknights of the 0th generation, unique characters without weapons, priced at 1 SOLANA each. The planned second batch of 10,000 knights will be equipped with gear from distant lands. These knights are well-trained, having honed their skills in military camps in distant towns. As their owner, leader, and comrade, you will guide these honorable knights. They can serve as your main character, help you in battles, act as merchants with discounts on their specialties, and even be sent on missions to purchase goods worldwide.

In Solaknights, we have integrated the characters with Unreal Engine 4/5. By owning a Solaknight, you officially partner with the Solaknights Academy. Import them at your leisure, utilize them to your advantage, and even exchange their equipment to create a stronger individual army if you desire. Resources come from Synty Studios, and further customization will be released once our 3D designers/modelers are up and running. Many assets will serve as placeholders during development, with NFT updates to follow. If needed, ask the admin for any license/credit inquiries.

Solaknights Academy has gained many partners to bring our knights online. We have formed an alliance with Dipes, who has given us the power of Chris P. Bacon, a farting pig that not only slaughters enemies with its stench but also with harsh words. We have obtained magical allies from Solana Curtis, who has trained in water magic. Solana Curtis now offers our knights the opportunity to acquire water magic allies! Gradually, leaf, fire, holy, and dark allies will be available.

Each Solaknight will have a rare type labeled on them, indicating their rarity. Certain rare items come with privileges. Higher rarity levels bring better privileges, item discounts, real estate, airdrops, weapons, and more. The order is as follows: White: Common, Green: Uncommon, Blue: Rare, Red: Super Rare +5% (all items), Purple: Epic +10% (all items), Orange: Legendary +20% (all items), Pink: Artifact +30% (all items), Baby Pink: ???.

The Reality

While the SolaKnights project appeared impressive, there is no indication that the developers intended to finish the project.

What Happened

Users who purchased NFTs never received them, and the SolaKnight project never fully launched.

Key Event Timeline - SolaKnights Rug Pull Equivalent_Toe5454

Date	Event	Description
August 27th, 2021 11:50:06 AM MDT	SolanaKnights Homepage	The SolanaKnights homepage is first captured in the Internet Archive. TBD - The content of this page does not load.
October 1st, 2021	Minting Calendar Date	According to a listing on NFT SOL Calendar, the SolanaKnights NFTs are available to mint starting on October 1st, 2021.
October 8th, 2021 4:00:01 PM MDT	Spanish Review Video	A review video was uploaded in Spanish. It introduces the SolaKnight NFT project, highlighting its 3D designs, game plan, heroes, graphics, and the importance of community support. The video talks about partnerships and a plan to create a revolutionary game through an academy. It mentions different types of heroes, categorized by different rarities and colors. The speaker shows examples of characters and graphics, emphasizing the impressive visual quality. It also mentions the goal of reaching 100,000 Discord members.
November 5th, 2021 3:34:15 PM MDT	SolanaKnights Homepage	The last capture of the SolanaKnights homepage on the Internet Archive. TBD - The content of this page does not load.
December 4th, 2021 9:58:35 AM MST	Reddit Post	Posted on Reddit.
March 31st, 2022 1:11:40 AM MDT	Website Suspended	The SolanaKnights website is captured as displaying a domain suspension warning. "As a Registrant of a domain name, a new domain registration or changes to the first name, last name or email address of an existing domain name, requires verification of the information within 15 days. Since you failed to verify the Registrant information, this domain name and any other domain name using the same Registrant information no longer resolves. For your domains to operate and resolve normally, resend the verification email to yourself, and complete the verification process."

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

Investigation To Trace Down Creator

"Today, I got a rug full.The project name is Solaknights.Twitter disappeared, and the discode exploded.I put a lot of sol into this.

I was angry and started searching.

Starting with the first clue. His discord ID.

Searching google.

The most decisive thing. This is solaknights game.

It's the same as the game below.Link.

Find his name.His name is Rohan Sareen. I can check the game tasks.

Searching Rohan Sareen

Graduated from that school

He is still active.

Find him.

As a result, thousands of people lost their sol, and I also lost dozens of sols."

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

Ongoing Developments

TBD

Individual Prevention Policies

Individuals should exercise caution in which projects that choose to participate in, and it makes sense for all projects to have a third party validation. Funds should be placed in a multi-signature wallet held by multiple known parties. It should be clear and agreed ahead of time on what happens if the project doesn't deliver on key milestones. If working with a single person is needed, a trusted escrow may be considered.

Avoid the use of smart contracts unless necessary. Minimize the level of exposure by removing or withdrawing assets whenever possible. Aim to choose smart contracts which have obtained third party security audits, preferably having been audited by at least three separate reputable firms. Pay attention to the audit reports, which smart contracts are covered, and whether the smart contract has been upgraded or modified since the report. Ensure that any administrative functions with the ability to remove funds from the smart contract are under the authority of a multi-signature wallet which is controlled by at least three separate and reputable entities.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Platforms need to improve education for users, and follow best practices themselves, so that it's easier for consumers to identify risky platforms.

All aspects of any platform should undergo a regular validation/inspection by experts. This validation should include a security audit of any smart contracts, reporting any risks to the backing (of any customer assets, ensuring treasuries or minting functions are properly secured under the control of a multi-signature wallet, and finding any inadequacies in the level of training or integrity of the team. The recommended interval is twice prior to launch or significant system upgrade, once after 3 months, and every 6 months thereafter. It is recommended that the third party performing the inspection not be repeated within a 14 month period.

All wallets, minting functions, and critical infrastructure should be implemented with a multi-signature requirement, with a recommended minimum of 3 signatures required. This means that making important changes or approving spending will require the keys held by at least 3 separate individuals within the organization to approve. The multi-signature should be implemented at the lowest layer possible, all key holders should have security training, and all key holders should be empowered and encouraged to exercise diligence.

An industry insurance fund can assist in the event of loss, and to ensure proper validation.

Work with other industry platforms to set up a multi-signature wallet with private keys held separately by delegate signatories from seven prominent platforms and services within the industry. Establish requirements for contributions by all platforms and services, designed to be affordable for small platforms yet large enough to cover anticipated breach events. Any breach event can be brought forth by a member platform or a petition of 100 signatures for consideration by the delegate signatories. A vote of 4 or more delegate signatures is required to release any funds, which could partially or fully restore lost funds based on their assessment.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

Third party security and risk assessments can help ensure that projects are set up in such a way that no single individual can walk away with the funds, that there are clear guidelines on the failure to hit key project milestones, and that the individuals running the project are known and can be held to account.

All platforms should undergo published security and risk assessments by independent third parties. Two assessments are required at founding or major upgrade, one after 3 months, and one every 6 months thereafter. The third parties must not repeat within the past 14 months. A risk assessment needs to include what assets back customer deposits and the risk of default from any third parties being lent to. The security assessment must include ensuring a proper multi-signature wallet, and that all signatories are properly trained. Assessments must be performed on social media, databases, and DNS security.

An industry insurance fund can assist in the event of loss, and to ensure proper validation.

Set up a multi-signature wallet with private keys held separately by delegate signatories from seven prominent platforms and services within the industry. Establish requirements for contributions by all platforms and services within the country, designed to be affordable for small platforms yet large enough to cover anticipated breach events. Any breach event can be brought forth by a member platform or a petition of 100 signatures for consideration by the delegate signatories. A vote of 4 or more delegate signatures is required to release any funds, which could partially or fully restore lost funds based on their assessment.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.