The issue originated on our V2 platform, operated by our Lithuanian subsidiary, UAB Globiance LT. A critical flaw in the staking software allowed malicious actors to exploit the system, repeatedly withdrawing rewards and principal. While initial signs pointed to a technical glitch, investigations suggest insider involvement may have bypassed internal safeguards. This exploitation drained liquidity, leaving UAB Globiance LT unable to fulfill refunds independently.
Clarification on Recent Asset Movements:
Recent social media posts by newly created accounts (established solely to attack this company and defend third-party interests) have falsely claimed that routine XDC transfers to regulated exchanges represent misappropriation of user funds. These claims demonstrate a fundamental misunderstanding of exchange operations and appear designed to harm shareholder value rather than help users.
1. Routine Market Making Operations
When users withdraw BTC, ETH, or XRP from Globiance, the platform acquires these assets through standard market operations on regulated partner exchanges (KuCoin, Bitrue). This involves sending XDC to exchange deposit addresses, executing swaps, and withdrawing the acquired assets to fulfill user requests.
Critical distinction: Once XDC is swapped for other assets to meet withdrawal demands, the resulting XDC balance becomes Globiance's operational asset, not "stolen user property." The XDC movements referenced are legitimate trading operations to maintain platform solvency.
2. Virtual Balances vs. Real Assets
The total impact from the staking incident far exceeds the figures currently being circulated. The transactions flagged represent roughly 70 million XDC only a very small fraction of the actual damage transferred to regulated exchange deposit addresses (not private wallets).
Critical technical distinction: The XDC balances within the compromised staking system were virtual inflation, not backed by actual XDC deposits. The exploit allowed bad actors to create artificial XDC balances that never existed in reality. These actors then converted these virtual XDC into real withdrawable assets specifically BTC, ETH, and XRP using our internal order books.
Therefore: The assets stolen were never XDC. The 70 million XDC figure represents legitimate operational liquidity being moved for market-making purposes, entirely separate from the exploit which involved the conversion of fictitious staking balances into other cryptocurrencies. Suggesting that moving XDC to exchanges constitutes "recovery of stolen funds" is technically incoherent the theft involved the extraction of BTC, ETH, and XRP obtained through the swapping of non-existent XDC balances, not the extraction of XDC itself.
3. Asset Type Reality
The actual exploit involved withdrawals of BTC, ETH, and XRP - not XDC. The XDC transfers flagged are unrelated to these stolen assets; they represent standard liquidity management to acquire the currencies needed to honor legitimate user withdrawal requests.
The Voluntary Refund Commitment:
The actual situation of the company UAB Globiance LT was BANKRUPT. The story could have ended here with a total loss for users and shareholders walking away. This is the standard outcome in finance: when Lehman Brothers collapsed, shareholders did not return to work to repay clients from their own pockets; they simply accepted the loss and moved on.
What happened instead: Shareholders who themselves suffered heavy personal asset losses invoked a company-wide commitment to refund users a promise made to protect the community rather than a traditional insurance policy. Despite the bankruptcy, despite the personal financial devastation, and despite increasing organized hate campaigns against them, these shareholders chose to rebuild rather than abandon the community.
Since the incident, they have worked to generate revenue to repay clients from their own personal funds.
To date, over 20% of affected users have already been refunded, with more processed daily an outcome unprecedented in the history of financial insolvencies, where typically zero cents are recovered.
We must address the organized group that has formed specifically to sabotage these refund efforts. This organization was founded by former insiders who voluntarily left the company, and has since recruited misled clients many of whom simply want their refunds and do not realize they have been drawn into criminal activity.
This group has engaged in:
This group has engaged in:
• Death threats against shareholders and their families
• Fabricated evidence provided to regulators (including false reports that triggered regulatory alerts in jurisdictions where we had already ceased operations)
• Defamatory campaigns using newly registered domains and recently created social media accounts (established solely to attack this company while defending third party interests)
• Sabotage of operations through fake legal complaints in multiple jurisdictions
• Resource depletion aimed at preventing refunds by forcing the company to defend against frivolous cases rather than process repayments
Police investigations are currently active in four countries regarding these criminal activities, including threats of violence and coordinated defamation.
The Direct Impact on Users:
Despite shareholders' voluntary commitment to refund users from personal funds, this group actively works to slow these payments. Every hour spent defending against fabricated police reports and regulatory complaints is an hour not spent processing refunds.
These individuals are not victim advocates they are obstacles to user recovery. By draining resources and creating legal chaos, they harm the very users they pretend to represent.
• Report criminal activity to authorities if you have information about organizers threatening violence or fabricating evidence
• Verify facts through official Globiance channels rather than anonymous accounts created days or weeks ago for the sole purpose of attacking this company
• Support the refund process by allowing the team to focus resources on user repayment rather than defending against sabotage
The allegations regarding XDC movements are factually incorrect and appear to be part of a broader campaign to destroy shareholder value. The transactions represent legitimate market making operations not theft.
We remain committed to refunding 100% of affected users despite these obstruction efforts. To those behind this campaign your actions only delay refunds for the community you claim to defend. Justice is proceeding through proper legal channels.
Globiance Team
March 2026