ICONOMI (www.iconomi.com) lost 1million+ ATOM wallet seed phrase

During the ICO, the ICONOMI company (www.iconomi.com) invested 2,222 ETH in the cosmos project. They did it via a third party (and escrow). Unfortunately, the third party lost the seed phrase and now more than 1 million ATOM are stuck in this wallet : https://www.mintscan.io/account/cosmos1r3xvguuhwvlk34esxclvrh3g7ycmcqqc2kcn9v

This amount has been clearly untouched since its creation.
Is there any way they can recover the seed phrase and stake this amount ?

For reference, here is the rocket.chat log of one of the team members of ICONOMI :

mennopp [11:32 AM]
Hey Matej, that really does not explain it… Sorry but did ICONOMI somehow never have access to the ATOM? and it is lost with a agent now?

  • matej Team Member 3:08 PM

@mennopp Initially, we would like to clarify that the ATOM tokens distributed in the ICO are still at the same address they were sent to in the so-called token generation event. Furthermore, these tokens have not changed addresses since the token generation event and are all still at the same address on the blockchain. Secondly, the transaction in which 2.222 ETH were sent to the Cosmos ICO address as ICONOMI’s investment into Cosmos was initiated and overseen by ICONOMI.

We participated in the Cosmos ICO in 2017 with the help of an agent who, after the token generation event, informed ICONOMI that the seed phrases needed for the ATOM tokens to be accessed and disposed with were not available to ICONOMI. In other words, ICONOMI had no power of disposal over the ATOM tokens.

Since we consider the ATOM tokens to be outside of control of ICONOMI, we have agreed with the agent to receive back our initial investment in the Cosmos ICO, i.e. 2.222 ETH. We have indeed received the agreed upon ETH amount, which we have nevertheless accounted for in the ‘Other” category of our balance sheet. The reason for doing so is that we still believe there is a chance ICONOMI obtains access to the ATOM tokens from the ICO investment. In fact, if any proposal (there is at least one proposal currently gaining support from Cosmos ICO investors who have lost their seed phrases) is successful, we still have an arrangement to exchange the 2.222 ETH for the entire quantity of ATOM tokens that would be made available to ICONOMI.

@elly Hi, we updated the Q2 report with that explanation.

2 Likes

Thanks for bringing this up, @Neo. I reached out to my contact at Iconomi to try and clarify the situation. I’m trying to help with the genesis atom recovery proposal draft that you can find here: Draft : Proposal to help fundraiser participants who lost their seed phrase.

Thank you @cryptic_monk ! Have you been in contact with ICONOMI’s team, did they reply anything ?

I’m in contact with them, but things take a bit of time because they have to round up some info internally first.

Glad to hear that, they are silent on the official chat since the cosmos thing came out. I hope we solve this drama soon.

Rounding internal information is not iconomi’s best job. Still 15 days till this is public and no communication about that from them. What about you guys ?

Still no news from ICONOMI. Wow. Should we consider this 1M+ wallet lost forever ?

UP !! Still nothing !! WTF ??

Crazy. Someone should create a escrow on the escrow and make the one responsible for the seed phrase penalized when that eth is rewritten in a future fork.

Hmm I’m not following my own logic. Either way kanomis loss. They forked back a whole btc I lost in a wallet I got at a coin faucet in '09 or when 1 btc was at .64 cents and lost access to the machine with a hardware wallet in a work machine and I quit thinking I was doing myself a favor. My key was backed up on a cloud. That went out of business.