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HectorDAO surrenders control to court-appointed firm

TL;DR

  • HectorDAO has surrendered control of its treasury and other aspects of its services to the court-appointed consultancy firm Interpath Limited.
  • Investigation and transition to professional management.

Interpath Limited, an insolvency consultancy firm also known as Interpath Advisory, has assumed control over the treasury and social media channels of the Hector decentralized autonomous organization (Hector DAO) as of February 21. This move follows a $2.7 million hack in January, which prompted concerns among investors regarding the security and management of the DAO’s assets.

HectorDAO hands over platform access to Interpath Limited

The hack, speculated to be a result of a compromised private key or the actions of a rogue developer, led to calls for a neutral third party to oversee the situation. On February 19, Interpath’s representatives, Mr. Drury, and Mr. Pretlove of Interpath (BVI) Limited, were appointed as joint interim receivers by the Virgin Islands High Court (Commercial Division), Eastern Caribbean Supreme Court.

This appointment granted them authority over all assets held by or on behalf of Hector DAO. Interpath, listed as a regulated entity and insolvency practitioner by the British Virgin Islands Financial Services Commission, signifies a shift towards professional liquidation of the DAO’s funds. The company’s involvement extends to assuming control of HectorDAO’s communication channels, including its social media platforms.

The intention is to facilitate transparent communication with investors moving forward. Before this transition, the last communication on the protocol’s Telegram channel was on January 2, preceding the hack. Interpath aims to provide updates on the situation and establish channels for investors to address concerns regarding their investments.

Additionally, Interpath has initiated an investigation into the January hack to recover investors’ funds. James Drury, the company’s director, personally confirmed this initiative in a message posted on February 19. Furthermore, on February 21, Interpath announced the full custody of the Treasury assets, which have been transferred to a new secure wallet.

Investigation and transition to professional management

The previous wallet holding the funds has also been secured, with all previous signers removed from its multisignature authorization. It is noteworthy that the HectorDAO team no longer possesses the authority to authorize transfers from the Treasury, as none of the previous signers are involved in the new wallet. However, Interpath’s current mandate from the court does not include the distribution of funds.

Final approval from the court is required for any distribution to occur. This indicates a procedural hurdle that must be cleared before investors can expect any disbursements. The recent incident involving the hack is not the first challenge faced by HectorDAO. Last July, the DAO experienced significant losses totaling over $8 million due to the depegging of some bridged tokens on Fantom from their Ethereum collateral.

This event was triggered by the Multichain exploit, which led to the closure of the Multichan Fantom bridge. In response, the DAO voted to liquidate its Treasury and return funds to investors. However, as of the present, a substantial portion of the funds remains undistributed.

Overall, Interpath Limited’s involvement signifies a transition towards professional management and resolution of the issues plaguing HectorDAO. With a focus on transparency, investigation, and asset protection, the company aims to address investor concerns and navigate the complexities of the situation with diligence and integrity.

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 decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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