IO.NET Fake Ethereum Token

Notice: This page is a freshly imported case study from the original repository. The original content was in a different format, and may not have relevant information for all sections. Please help restructure the content by moving information from the 'About' section to other sections, and add any missing information or sources you can find. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

Notice: This page contains sources which are not attributed to any text. The unattributed sources follow the initial description. Please assist by visiting each source, reviewing the content, and placing that reference next to any text it can be used to support. Feel free to add any information that you come across which isn't present already. Sources which don't contain any relevant information can be removed. Broken links can be replaced with versions from the Internet Archive. See General Tutorial on Wikis, Anatomy of a Case Study, and/or Citing Your Sources Guide for additional information. Thanks for your help!

IO.net Logo/Homepage

IO.net allows for the purchase of cheap GPU processing, and those with GPUs can sell their processing power on the open market. The IO.net service uses a Solana-based token. An attacker created a fake IO token on the ethereum blockchain. Once enough people had invested in the fake token, the attacker pulled all the liquidity from the smart contract.

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

About IO.NET

"The Internet of GPUs is Finally Here" "The Power of Global GPU Resources with a Single Click"

"The IO Cloud allows you to deploy and manage on-demand decentralized GPU Clusters. This provides users with access to GPU resources without expensive hardware investments and infrastructure management. IO Cloud democratizes access to GPUs by providing ML Engineers & Developers the same experience as any cloud provider.

IO Cloud leverages distributed resources from a decentralized network of nodes called IO workers. Clusters provide the building blocks of IO Cloud and are fully meshed self-healing GPUs. With IO Cloud, you can leverage a decentralized network of GPUs/CPUs capable of executing Python-based ML code for your AI projects. This platform is Natively powered on the RAY distributed computing python framework used by OpenAI to train GPT3 and GP4 across 300K servers."

"IO Worker is like having a virtual rental manager for your device! It's a simple web app that lets you lend your computing power to those tackling AI tasks, making it easier for everyone to access the resources they need.

Thanks to our decentralized setup and smart resource management, you can earn more by renting out your GPU/CPU than you would with traditional cloud services. It's a win-win situation where you support others while boosting your own earnings.

With IO.NET, you're not just renting out hardware; you're part of a community that values collaboration and efficiency. Whether you're a business looking to optimize resources or an individual keen on making extra profits, IO.NET has got you covered!"

"Fake IO on ETH is suspected of a rug pull, with the deployer removing substantial liquidity, causing a 100% price decline."

"Be aware of this token! Team of this token has sold at least 90.97 ETH."

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

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - IO.NET Fake Ethereum Token

Date	Event	Description
April 24th, 2024 5:54:35 PM MDT	Smart Contract Creation	The fake IO token smart contract is initially created on the Ethereum blockchain.
April 24th, 2024 10:29:23 PM MDT	Ethereum Transaction	An Ethereum transaction happens to swap 1,769,800,761,000,000 of the fake IO tokens for 90.969727678210249398 ethereum.

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 has been estimated at $289,000 USD.

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

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

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

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

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

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

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

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

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