Peter Shepherd came out today to make a public announcement about what happened with Hexabot on our Unofficial Telegram Super Group. This article will highlight the facts leading up to Hexabot going offline indefintely and answer everyone’s concerns on whether or not Hexabot just did one of the most brilliant exit scams in the history of HYIPs.
Here’s a summary of the annoucement with all the noise removed:
What Really Happened on December 4, 2017
Shortly after Hexabot’s Swing Bot paid out on Monday, December 4, 2017, Hexabot became a target of a Layer 7 Distributed Denial of Service (DDOS) “HTTP” Flood Attack. This hack caused Bitcoins to become stolen both intentionally and accidentally from Hexabot’s wallets, triggered a glitch where all users received 6 to 11 free Bitcoins in their withdraw wallet, and eventually forced the site and its community chat to be taken offline indefinitely.
At first, Peter and the user community had no idea Hexabot was hacked. Users first complained about Bitcoin withdrawals not working properly and Peter thought it was a server or software glitch so he attempted to pause the site and reboot Bitcoin Core.
But the withdrawal requests kept on coming in even after rebooting the system. “It’s been 5 seconds since it’s online again and over 100 people are trying to withdraw,” said Peter in the community chat.
Peter most likely soon realized that Hexabot was the target of an intential DDOS “HTTP” Flood Attack. In layman’s terms, someone attempted to hack Hexabot by flooding the Bitcoin withdrawal URL with multiple simultaneous requests from multiple accounts and caused Hexabot to payout double, triple, or even quadruple transactions to the withdrawer when it was only supposed to payout the amount once.
Replicated transactions were confirmed by multiple, credible members of the Unofficial Hexabot Community.
Dreemusa, a Hexabot user who’s also an experienced programmer commented,
“It overloaded the daemon – I am positive that it actually did happen. The website sent me double my withdraw in two different transactions, but didnt register the transactions on the website database. His code wasn’t good at error conditioning.”
Another community member CryptoASL reported,
“(Hexabot) sent me 4 of the same amount of transactions at the same time even though I didn’t request this. I only requested 1 transaction instead of 4.”
While the unknown hacker was most likely able to run away with an unkown amount of Bitcoins, most Hexabot’s Bitcoin wallets remain safe and untouched thanks to the quick reaction from Peter to pull the plug to disable Bitcoin withdrawals.
While non-Bitcoins were not affected by the hack, Peter also disabled withdrawals for Litecoins and Dash as a preventative measure. “I didn’t want them to do the same with Litecoin and Dash,” said Peter.
Now when users tried to withdraw, they will see a red popup that says “Error! You don’y have any active deposits.”
Of course, these coins could not be withdrawn.
This glitch most likely resulted from a broken or corrupted wallet database.
The Aftermath: FUD, Faith, and Reason
As the dust settled in the hours and days after the site stopped working, FUD and conspiracy theories spread like a plague amongst Hexabot’s users. Some even contemplated suicide or how it was the end of the world. The Unofficial Hexabot Community ballooned to over 1,200 members as Hexabot users from across the globe demanded answers and their crypto funds back or simply wanted a place to cry their tears of sadness.
Many users visciously attacked Peter Shepherd for being a brilliant exit scam artist and called for his immediate persecution. Some rallied to collect funds to start a class action lawsuit. Some even called for individuals in the Dark Web to dox and/or cause physical harm to Peter Shepherd and his affiliates.
Hexabot and HYIP haters had an heyday on social media and online forums, geefully cackling with delight and stoking their ego at the expense of the Hexabot “victims”, believing they were right all along that Hexabot was a scam.
Despite the FUD, many others, especially the “whales” (those that invested over $1,000 or more in Hexabot) stayed calm and silently held their faith in Peter Shepherd because there was still no official evidence the exit scam occurred and many of Peter’s actions in the past did not show any red flags of him being a typical scam artist.
They reasoned that something legitimately happened to the site as Peter was actively trying to fix things and stop people from panicking before the site went down.
They reasoned that this the crypto funds were never removed from their wallets on the blockchain after the site shut down and if Peter was a scammer the funds should have been long gone. (Fund movement on the blockchain are all transparent).
They reasoned that if there was indeed an exit scam, the site would no longer be up and Peter would never check or reply via his email and Telegram chat.
They reasoned that pay day was the worse time to do an exit scam as that’s when most people are online and would notice.
They reasonsed that if it was indeed a hack and the database got corrupted it would take way more than a few days to sort out millions of dollars worth of funds.
They reasoned that Peter comes across as an intelligent programmer with a conscience but was terrible at running PR and customer relations; so he should be given a chance to fix things and make things right.
How Long Will Hexabot Be Offline?
A side-effect to pulling the plug most resulted in the Hexabot wallet database to be “broken” or corrupted. Peter reported, “Bitcoin Core didn’t restore and wallet data file is just broken with over >3k btc. Wallet.dat is just broken. LTC and DASH are fine.”
Peter, a one-man developer, has to fix a broken database that governs over 3,000 BTC belonging to hundreds of thousands of users. That’s over $40 million dollars USD he has to sort out to make sure users get the right amount back and account for the lost coins.
Peter took the site down today to prevent new sign ups and “is stressing” to fix everything. He has not announced any ETA on when the fix will be done but most likely it will take awhile.
Personally, I will guess it will take at least a week or two, or even a month. It will definitely take more than a few days.
So What Lesson Did We Learn?
You should never invest money you are not prepared to lose in cryptocurrency.
Many of the individuals that cried crocodile tears and FUD proved that many people in Hexabot are gamblers, not investors that did proper risk assessment. Those that took out critical life savings to gamble should have no one to blame but themselves even if Hexabot was going to truly exit scam.
You need to diversify to minimize risks.
The good news? If you still have money in Hexabot it’s your lucky day. Most (if not all) of your Bitcoin is still there. 100% of your Litecoin and Dash are still untouched.
We just have to wait for Peter to sort out the wallet data and get the site back up and running.
Today’s annoucement from Peter restored a lot of faith in people and humanity and strongly validates that such a wonderful, high paying bot system can exist in the cryptocurrency world.
At the writing of this article, Peter took down the site (it won’t load in your browser) to fix things and prevent new registrations. (This is the right thing to do.)
All the haters can continue to hate because of ignorance and fear of others becoming more successful than them. They do not understand this is the first time in human history where billions of dollars are poured into a market in such a short period of time and how such high returns are possible. According to CoinMarketCap.com, The cryptocurrency marketcap has skyrocketed to about $400 billion dollars now is in on track to becoming a trillion dollar industry in the next year or two. Therefore, being in the right place, right time, with the right tools and knowledge can make one a lot of money.
I look forward to Hexabot being restored, unqualified investors and gamblers leaving, and Peter limiting the number of new investors so that the faithful can continue to support and profit from an excellent product from a developer with a soul and integrity.
Wishing you a Happy Holiday!