Fi flips again, reimbursing victims of crypto hack

Fi flips again, reimbursing victims of crypto hack

  • Fei’s Tribe DAO voted to repay $80 million in stolen money to victims of its April hack
  • The vote, which took place on Monday, was the protocol’s fourth vote in what was a chaotic payment process

After months of mixed signals, the victims of the $80 million Fei protocol hack have finally been reconciled.

Fei’s payment plan — which was rolled out this week — has been winding up in shambles for the past few months. The protocol first voted in favor of compensating hack victims, before changing course and offering only partial compensation. After the backlash, Fei’s DAO finally voted to fully compensate the victims.

Olympus Dao, which lost $9 million in the April hack, an overwhelming majority of 93 million votes out of 99 million votes. The vote was one of the last governance decisions to be made by Fei’s Tribe DAO before it was eliminated.

Months before the Fuse lending protocol was hacked, Fei merged with lending protocol Rari Capital. The partnership hinted at things to come regarding Fei’s internal governance.

“Method [the Fei-Rari merger] “He was a pretty brutal regulator for anyone who wasn’t a majority-controlling shareholder,” said Luca Prosperi, a researcher at DeFi.

After hacking the newly merged Fei in April, the DAO tribe went through Quick vote To make hack victims complete. Then hold fi contrary second vote Which stands against full repayment and said it would end the tribe.

then fi suggest a plan That would offset less than 10% of losses incurred by Fei’s top investors, such as Frax Finance and Olympus DAO. Sam Kazemian, CEO of Frax, The fraud procedures in the protocol are called. Fei’s team confirms that he did nothing wrong.

“This is the most important fact that needs to be made clear,” Fei founder Joey Santoro told Blockworks. “The initial vote was a quick, non-binding referendum.”

The second survey, which was sequential and binding, was the one that really mattered, according to Santoro. Fei does not see the April hack as her own responsibility, as the hacked Fuse protocol was run by Rari, which is still under a different team than Fei – despite the merger.

Fei’s post-hack waving shows how DAOs aren’t always without permission, with internal developer teams sometimes controlling governance decisions and making central decisions behind the scenes.

“Ultimately when shit hits the fan and it comes to money, there is no protection,” Prosbury said. “She has returned to rule the jungle.”

Fortunately for the Fei hack victims, the Fei team decided not to press their advantage. After Fei faced the firestorm of the proposed partial payment plan, another Quick vote Passed full reimbursement support, and Fourth voteIssued and executed on Monday, he returned the lost money.

Get the best cryptocurrency news and insights of the day right in your inbox every evening. Sign up for our free Blockworks newsletter now.

  • Jack Kupenick


    Editorial Trainee

    Jack Kopenk is an intern with the Blockworks Editorial Team. He is a rising student at Cornell University where he has written for the Daily Sun and serves as the editor-in-chief of Cornell Claritas. contact jack at [email protected]

Source link

Leave a Comment