- Stuck bridge users prioritized
- LP compensation to follow
- Compensation form in progress
Allbridge, a multi-chain token bridge provider, has put forth a contentious recovery plan after suffering a $573,000 hack on April 1st. The plan outlines compensation for affected users, sparking debate over prioritization.
In a statement released on April 5th, Allbridge announced the commencement of the compensation process, despite only partially recovering the stolen funds. The plan prioritizes users whose transactions were stuck in pending status following the emergency shutdown.
After compensating these users, Allbridge will turn its attention to its liquidity providers (LPs), who were also impacted by the exploit. The company’s goal is to fully reimburse all victims using the available funds.
Following the hack, Allbridge enabled LPs to withdraw their funds on April 2nd. While most were able to withdraw their assets, some users exploited the pool’s disbalance and withdrew more than their original balances. Consequently, others could not withdraw a reasonable amount from the liquidity pool.
Allbridge is currently drafting an application form for affected LPs to apply for compensation and document their losses. The form is expected to be ready within the next two days, and the compensation process is slated to begin next week. The initial focus will be on users who utilized the bridge just prior to the shutdown.
In other news, cryptocurrency derivatives market Dragonfly Capital invests $10 million in Bitget, increasing the competition for market supremacy in the wake of FTX’s demise. The investment by the San Francisco-based venture capital firm, which was disclosed on April 4, aims to expand Bitget’s global market presence and improve its services.
