Bridge/Multisig Funds Stolen, What can we actually do?

Without speaking on the topic of IF the funds can be returned, because we will not be able to know the answer to that question for some time.

What can be done if the funds CAN’T be returned?

Clearly there is a hope that the funds which were stolen from the non-trustless bridge will be returned.

Clearly the future deployment of the new trustless bridge will remove much of the concern of needing to fall victim to this kind of attack.

What can we do if these funds can’t be returned?

How can we navigate this?

Is there any possible chance of restitution or responsibility for these lost funds?

We’re looking at a very large problem.

We can’t just live in hope for the best, we should plan for the worst case scenario.

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Only think I can think of is what flu mentioned.

possible 3rd party providing the lost liquidity for some obvious compensation for it in a locked in term. Hate thinking about it.

Idk how or who can do that. Hopefully we can get some brain storming going with the community.

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I don’t think there will be a bail out. Too much bloodshed in the markets right now.

Did the Harmony core team offer some kind of bounty for the hacker to return the stolen funds?

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we’ve sent a message to the perpetrator in hopes that we can reach an agreement. also…

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Thanks for the update @Jacksteroo

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Thanks @Jacksteroo! Hope we get good news soon.

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Our community members lost a lot of money they had on harmony chain stored as BTC or ETH, due to the insufficient liquidity everywhere… Will you inject the liquidty so people could restore their funds or is harmony closing the store and this is the last nail in harmony coffin??

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Here you have the answer

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The problem is much bigger: just transfer some one from binance and change it to stables, easy 400% roi - and now sit down to think and confess that it is over.

The team needs to start planning for the worst case scenario: 100M gone and no bail-out.

In all cases, I think the worthless assets need to be removed from circulation ASAP.

I would like to see a buy-back program that pays in One over multiple months/years to cover the loss. At least it would give some value to those worthless assets.
Basically, investors give worthless tokens to a smart contract and get an IOU of the value of the token (plus a small premium), but the reward is slowly paid back in one over the course of multiple months/years based on one performance.

This should give back at least partial value to the asset and give opportunity to investors still believing in the project to make a profit over time.

Those ones could come from staking/transaction fees (instead of being burned) or even minted as long as the minting is only a few percent of the total of circulating one per year.

If money is found or partially returned, then we could accelerate the buy-back using this income.

Of course, this minting would dilute investors owning ONE. But I think most of them agree now that the biggest risk is to see the project completely collapse. If no refund plan/payback and no bailout is made, Harmony is dead 100%, mark my word.

Finally, I would recommend setting a deadline for this buy-back program, for example one month, to quickly remove from circulation most of the un-pegged tokens and close this sad chapter once and for all.

Now Ethereum trustless bridge should be the uttermost priority from the team perspective. RPC and Explorer remain the two other big things the team needs to deal with.

The team should acknowledge the poor management and security practices that lead to this catastrophe, and apply strong leadership changes. I would love to see a motion of censure vote taking place in this regard.

Note that I tried to make a thread basically explaining this to see if some fellow investors would agree with this, but it goes lost in moderation approval for some reason.

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That seems… unbelievable. @lij

Yeah, He’s definitely not a good dancer :man_dancing: I was expecting more :rofl:

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Big steps of course…