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.
The LAOS foundation has decided to honour the rewards to those who contributed to their crowdloan that could not execute due to a technical issue. Contributors will be receiving 100 LAOS tokens per every DOT contributed. It's important to note, that the tokens will now be all unlocked on June 28th 2024 (instead of linear over 2 years), and rewards must be claimed by 31st August 2024. Any unclaimed rewards will be burned.
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.