Acala Has Recovered Almost 3B aUSD
Acala has taken another step toward recovering funds affected by a recent hack.
- Acala has recovered 1.68 billion aUSD in its second trace following an attack that minted billions of tokens.
- Combined with an an earlier trace that recovered 1.29 billion aUSD, Acala has now recovered nearly 3 billion tokens.
- The project plans to publish further trace reports in order to help the community form recovery plans.
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Acala has recovered almost 3 billion aUSD following its second trace of addresses affected by a recent attack.
Acala Recovers 3 Billion aUSD
Acala has recovered another batch of affected funds.
The protocol was initially exploited on August 14. At that time, an attacker erroneously minted billions of dollars of its aUSD stablecoin and exchanged part of that amount for other crypto assets. However, the project quickly froze its network and prevented assets from being moved any further.
On August 15, Acala’s first trace recovered 1.29 billion of the affected aUSD. Now, Acala has recovered another 1.68 billion aUSD through a second trace completed on Aug. 17, bringing the total amount of recovered funds to almost 3 billion aUSD.
Specifically, Acala says that 1.68 billion aUSD remains on the 16 traced addresses along with other tokens. Those other assets include inverse synthetic Bitcoin (iBTC), Acala (ACA), Polkadot (DOT), and liquid staking DOT (LDOT).
Details of the trace suggest that the 16 addresses belonged to users who contributed to Acala’s iBTC/aUSD liquidity pools. Those addresses received the erroneously minted aUSD after claiming liquidity provider rewards from a reward pool.
Acala says that it will continue to publish further trace reports, which will help the community create proposals to resolve the situation. A post-mortem and other reports will also be published.
Other recovery efforts are also underway. On August 16, a coin burn was proposed and executed to help aUSD recover its dollar parity. The burn destroyed the 1.29 billion recovered in the first trace.
The burn was partially successful, as CoinMarketCap indicates aUSD is valued at $0.85, up from $0.01 post-attack.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.