Users with funds locked in the multi-chain token bridge provided by Allbridge will be the first to receive compensation under a recovery plan published by the project following a recent attack.
In an April 5 statement, Allbridge said it has already started a compensation process for users even though it has only “partially recovered the funds” after it was hacked for roughly $573,000 on April 1..
“We’ll start with bridge users whose transactions got stuck on hold due to the lockdown,” Allbridge said.adding that it will then compensate its liquidity providers (LPs).
We are committed to compensating our users affected by the exploit and are prepared to reveal our recovery plan.
Please check the latest announcement for details: https://t.co/h17VDKZ7H7
—Allbridge (@Allbridge_io) April 4, 2023
We are committed to compensating our users affected by the exploit, and we are prepared to disclose our recovery plan. Please see the latest announcement for more details: https://t.co/h17VDKZ7H7
“Our goal is to fully compensate the victims of the exploit with the funds available to us,” he wrote..
He noted that he allowed LPs to withdraw funds on April 2, and most withdrew their assets from the common fund.. However, some were able to withdraw even more “due to pool imbalance”.
Others were unable to withdraw “a reasonable amount” from the liquidity pool due to some users withdrawing more than their original balances and the impact of hacking on pools.
An application form is currently being drafted for LPs who were unable to withdraw their assets, which will allow them to apply for compensation and provide details of their losses..
The form is expected to be completed in the next two days. The compensation process is expected to start next week, starting with users who “have used the bridge shortly before the closure”.
“Everyone affected by the exploit will be subject to additional rewards in the future, but compensation remains our top priority.”
The compensation plan comes after Allbridge tweeted on April 3 that 1,500 BNB (BNB), valued at approximately $465,000, was returned to the project following a public proposal made to the hacker in an April 1 tweet.
Apparently, the protocol exploiter accepted Allbridge’s offer of a “white-hat bounty”, whereby he could keep a portion of the stolen funds in exchange for a guarantee that no legal action would be taken.
For his part, Eurler Finance, an Ethereum-based non-custodial lending protocol, announced on April 4 that it had recovered most of the $196 million stolen in a flash lending attack on March 13 following successful negotiations..
The attacker managed to steal millions in Dai (DAI), USD Coin (USDC), staked Ether (stETH) and Wrapped Bitcoin (WBTC) in the biggest hack of 2023 to date.
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