Victory for Stuck Bridge Users: Allbridge Begins Repaying Funds!
The compensation process will start next week with users who had money on the bridge “just before it closed.” In a statement on April 5, Allbridge said it had only “recovered partial funds” after about $573,000 was hacked on April 1 but had already begun compensating its users.
“We will start with bridge users whose transactions have been suspended due to an emergency shutdown,” Allbridge said, adding that he would compensate liquidity providers (LPs).
Key Takeaways
- The compensation process will start next week with users who had money on the bridge.
- The reward plan was announced after Allbridge tweeted 1,500 BNB on April 3.
- Attackers have successfully stolen millions of dollars worth of Dai.
- Protocol abusers accepted Allbridge’s offer of a “white hat bounty.”
- The BNB ticker fell by $314, worth around $465,000.
According to a recent tweet Allbridge;
“We aim to fully compensate victims of these exploits with the means at our disposal,”
it wrote.
LPs allowed funds to be withdrawn on April 2 and found the majority to remove assets from the pool. But some may pull more “due to pool imbalance.”
The form should be completed within two days. Next week, the compensation process will begin with users who “used the bridge just before it closed.”
“All parties affected by the exploit will receive additional compensation going forward, but compensation remains a top priority.”
The reward plan was announced after Allbridge tweeted 1,500 BNB on April 3. The BNB ticker fell by $314, worth around $465,000, and was returned to the project after an open offer to hackers in a tweet on April 1.
Protocol abusers accepted Allbridge’s offer of a “white hat bounty” to keep some of the stolen funds in exchange for guaranteeing no legal action would be taken. Meanwhile, Ethereum-based non-custody lending protocol Eurler Finance recovered most of the $196 million stolen in the March 13th flash loan attack on April 4 through successful negotiations.
Attackers have successfully stolen millions of dollars worth of Dai. DAI fell $1.00, USD coin USDC fell $1.00, Ether (stETH) and Wrapped Bitcoin (WBTC) bet on the biggest hack of 2023.
Allbridge has pledged to improve its infrastructure and operational processes to provide its customers with a secure and efficient environment. The company has said that it’s working with independent consultants to investigate its operational processes and infrastructure to identify any areas that require improvement.
The malfunctioning of the bridge, which caused so many to be stranded, has caused inconvenience, frustration, and in some cases, financial loss to those affected.
However, the company’s efforts to recoup funds and its commitment to refund those affected is a welcome move, and its commitment to reviewing its operational processes to prevent similar incidents in the future is much appreciated.
Allbridge has said that it is committed to ensuring that the bridge is maintained correctly in the future. It will conduct regular checks and servicing to avoid any further incidents. The company has also apologized for the inconvenience caused by the closure and thanked users for their continued support.