FairWin Wallet Drained After Ponzi Allegations & Ethereum Gas Concerns

A “gas guzzling” Ethereum-based gambling platform was accused of being a ponzi. Now its wallet is empty.

Here is the deal:

• Fair Win as an Ethereum-based betting platform that used a token called FWIN (not to be confused with Tron bet and the WIN token).
• Fair Win had been annoying Ethereum users recently as its “gas guzzling” smart contract was clogging up the network (it alone accounted for over 60% of gas usage on Ethereum, where gas is ETH paid as network fees).
• An Ethereum developer recently came out and announced the contract for FairWin had many “critical vulnerabilities,” including one that would let the owners empty the wallet at will.
• About $8 million worth of ETH was “locked” in the FairWin wallet at one point. About $4 million was still in there as of yesterday.
• Today the FairWin wallet was mysteriously emptied… but no one knows exactly what happened yet.

One theory is that as everyone started draining the FairWin wallet, the FairWin team emptied the wallet. It is unclear if this is an exit scam, or not however, as of course the vulnerabilities could have been severe enough that someone else could have emptied the wallet.

So the question is, “is this bearish or bullish for Ethereum?” The answer to that is not known. But one thing to keep in mind is that FairWin was one of the main reasons for Ethereum’s recently clogged network and higher than normal transaction fees… so not having that going full blast is good in some ways for other smart contracts on the Ethereum networ