Acala recovered almost 3 billion USD

Key points to remember

  • Acala recovered 1.68 billion aUSD in its second trace following an attack that hit billions in tokens.
  • Combined with an earlier trace that fetched 1.29 billion aUSD, Acala has now fetched nearly 3 billion tokens.
  • The project plans to release further monitoring reports to help the community develop recovery plans.

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Acala has recovered nearly aUSD 3 billion from its second trace of addresses hit by a recent attack.

Acala recovers 3 billion USD

Acala has recovered another batch of affected funds.

The protocol was initially mined on August 14. At that time, an attacker mistakenly minted billions of dollars from his aUSD stablecoin and traded some of that amount for other crypto assets. However, the project quickly froze its network and prevented assets from being moved further.

On August 15, the first trace of Acala recovered 1.29 billion of the aUSD concerned. Today, Acala has recovered an additional aUSD1.68 billion from a second trace completed on August 17, bringing the total amount of funds recovered to nearly aUSD3 billion.

Specifically, Acala says there is 1.68 billion aUSD left over the 16 addresses traced with other tokens. These other assets include Reverse Synthetic Bitcoin (iBTC), Acala (ACA), Polkadot (DOT), and Liquid Staking DOT (LDOT).

Trace details suggest that all 16 addresses belonged to users who contributed to Acala’s iBTC/aUSD liquidity pools. These addresses received the aUSD minted by mistake after claiming liquidity provider rewards from a reward pool.

Acala says it will continue to post further follow-up 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 the aUSD regain parity with the dollar. The burn destroyed the 1.29 billion recovered in the first trace.

The burn was partially successful, as CoinMarketCap reports that one USD is valued at $0.85, down from $0.01 after the attack.

Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and other cryptocurrencies.

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