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Allbridge compensates stuck bridge users after recovering funds

Allbridge compensates stuck bridge users after recovering funds

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  • Allbridge, a multichain token bridge provider, has announced a compensation plan for users affected by a recent exploit, which resulted in a loss of approximately $573,000.
  • The project will begin with compensating bridge users whose transactions got stuck in pending due to the emergency shutdown.

Allbridge, a multichain token bridge provider, has announced a compensation plan for users affected by a recent exploit, which resulted in a loss of approximately $573,000. In a statement released on April 5, the project stated that it has already started the compensation process, even though it has only been able to partly recover the funds. The project will begin with compensating bridge users whose transactions got stuck in pending due to the emergency shutdown and will then compensate its liquidity providers. The aim is to fully compensate all victims of the exploit with funds available to the project.

Allbridge also noted that it enabled liquidity providers to withdraw their funds on April 2, with the majority withdrawing their assets from the pool. However, some users were unable to withdraw a reasonable amount due to others withdrawing more than their original balances and the impact of the hack on the pools. An application form is currently being drafted for liquidity providers who could not withdraw their assets, allowing them to apply for compensation and provide details of their losses. The compensation process is expected to commence next week, starting with users who used the bridge shortly before the shutdown.

Also,  Allbridge tweeted on April 3 that 1,500 BNB, worth approximately $465,000, was returned to the project following a public proposal made to the hacker. The attacker seemingly accepted Allbridge’s offer of a “white hat bounty,” where they could keep a portion of the stolen funds in exchange for an assurance that no legal action would be taken.

Meanwhile, Eurler Finance, an Ethereum-based noncustodial lending protocol, announced on April 4 that it had recovered most of the $196 million stolen in a March 13 flash loan attack following successful negotiations. The attacker managed to steal millions worth of Dai, staked Ether, and wrapped Bitcoin in the largest hack of 2023 so far.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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