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Alameda Wallet Hack Prompts Stargate To Reissue STG Token

Published 02/02/2023, 07:05 PM
Updated 02/02/2023, 07:15 PM
Alameda Wallet Hack Prompts Stargate To Reissue STG Token

  • StargateDAO has proposed to reissue a new STG token and airdrop it to its holders.

  • The proposal was made due to the security concerns with Alameda Research’s Wallets.

  • The reissuing of STG tokens has been slated for 15 March 2023.

Cross-chain asset management protocol Stargate Finance has proposed to reissue a new STG token to replace its existing native tokens. As per the proposal posted on the DeFi protocol’s governance forum, the lack of clarity surrounding the ownership of Alameda Research’s wallets and other security concerns prompted this move.

The issue dates back to March 2022 when Sam Bankman-Fried’s crypto hedge fund Alameda Research acquired 10% of the total STG supply during an auction. Alameda CEO Sam Trabucco claimed at the time that the tokens would remain locked for at least three years, that is till March 2025. The voting powers associated with the STG tokens were ceded to early-stage community members.

Blockchain intelligence firm Arkham Intelligence reported sudden activity in Alameda’s wallets in December last year. The suspicious transactions led to speculations about a possible bad actor behind the activity. StargateDAO now believes that its proof-of-liquidity (POL) and the security of token holders face a significant ...

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