Users whose funds are stranded on the multi-chain token bridge provided by Allbridge will first be compensated according to the recovery plan released by the project after the latest exploit.
In a statement on April 5, Allbridge said it had begun compensating users despite only "partially recovering funds" after being hacked on April 1 for an estimated $573,000 loss. “We will start with bridge users whose trades are stuck in pending due to the emergency shutdown,” Allbridge said, adding that it will compensate its liquidity providers (LPs). "Our goal is to fully compensate victims of this exploit with funds available to us," it wrote.
It noted that it enabled LPs to withdraw funds on April 2, most of them withdrawing assets from the pool. However, some people may withdraw more funds "due to the imbalance of the fund pool". Others were unable to withdraw a "reasonable amount" from the liquidity pool because some users were withdrawing more than their original balance and the hack had an impact on the liquidity pool.
An application form is being drawn up for limited partners who are unable to withdraw their assets, allowing them to apply for compensation and provide details of their losses. The form is expected to be completed within the next two days. The compensation process is expected to begin next week, starting with users who "used the bridge shortly before closure".
"All parties affected by the exploit will receive additional rewards in the future, but compensation remains our top priority."
The compensation plan comes after Allbridge tweeted on April 3rd that 1,500 BNB, worth about $465,000, was returned to the project after a public suggestion to the hackers in a tweet on April 1. The protocol’s developers appear to have accepted Allbridge’s proposed “white hat bounty,” whereby they can keep a portion of the stolen funds in exchange for assurances that no legal action will be taken.
Meanwhile, ethereum-based non-custodial lending protocol Eurler Finance announced on April 4 that, following successful negotiations, it has recovered most of the $196 million stolen in the March 13 flash loan attack.
Attackers Managed to Steal Millions Worth of Dai, USDC, staking ether (stETH) and wrapping bitcoin (WBTC) in the biggest hack of 2023 so far.
