Reuben Yap, privacy coin, Firo steward said, the team has identified multiple Lelantus transactions that are “suspicious,” In response, he said, developers have activated their emergency switch to temporarily disable Lelantus to give them time to investigate and identify the issue.
Firo coin before 30 November 2020 was formerly ZCoin. It is now rebranded from XZC to FIRO ticker, according to coingecko.
Through Firo blog post, Thursday night, Yap wrote;
“Our core team is working with several parties, including engineers from Trail of Bits (who audited our Lelantus cryptographic library), another cryptographer, and a black hat to identify the issue. We have made significant progress in narrowing down the cause and are working on a proof-of-concept code to verify that what we’ve found is the core issue before resuming Lelantus functionality. Our team is also determining a plan to restore Lelantus functionality with minimum impact.”
The Lelantus protocol, launched in mid-January 2021, introduced “on-by-default” privacy. The new feature and prompts users to anonymize their funds to ensure transactions sent by official Firo wallets stay private. It allows the users the choice of transparent transactions and partial redemptions of Firo’s burn-and-redeem model, which previously had to be redeemed in full.
In less than a week from the launch, January 14, the exchange has experienced two challenges. The protocol has since encountered a 51% attack that forced it to push a hotfix to address the issue.
In response, Firo devs were able to disable the Lelantus protocol based on a previous vote that gave the core team the ability to temporarily “turn off and on features like Lelantus, chainlocks, and instant send.”
“While we have taken practical precautions including audits and review, developing cutting-edge privacy tech comes with risk,” said Yap in last night’s post. “The safeguards we put in place in recognition of this has mitigated damage as the technology matures and becomes battle-tested.”
Within 24 hours of the Firo attack and the Lelantus protocol shut down, the Firo coin went down 13.3%.