Bifrost provide an explanation of the incident from this morning. There was an exploit of private keys, leading to over 6M BNC being transferred away from the Bifrost treasury. Approximately 3M BNC was recovered, and the Bifrost core team have reimburse the remainder from their own pockets to make the treasury whole again. An ongoing investigation is underway, with potential legal action pending.
Bifrost put out an official statement to reassure users. - Incident was caused as a result of a user losing private keys. - A large amount vDOT was swapped out causing a slippage and price impact. - The depeg from the impact gave way to arbitrage opportunities. - Operations now smooth as the swap pool has now stabilized. - Bifrost's SLP is decentralised and is working as it should. Unfortunately the upper limit of unstaking vDOT was tested. - Underlying staked DOT is safe - Bifrost are trying to help the affected user.