Multichain

Tether USDt

Fantom

Read

Hector Network

<html>
 <head></head>
 <body>
 Hector Network is the latest project to have been affected by the Multichain shutdown. 
 <h2 class="wp-block-heading" id="the-majority-of-votes-move-to-liquidate-assets">The majority of votes move to liquidate assets&nbsp;</h2> 
 The Hector Network, a team behind a decentralized finance (<a href="https://crypto.news/tag/defi/" rel="noopener noreferrer nofollow">defi</a>) project on the Fantom ecosystem, is taking steps to prevent further losses following the bridge hack on Multichain. 
 The project put forth a proposal to the decentralized autonomous organization (DAO), suggesting either to liquidate assets in the treasury or to migrate the Hector Network, the assets, and the HEC token to another chain under a different brand. 
 The <a href="https://snapshot.org/#/hectordao.eth/proposal/0x4dea97a93c7d136f6e3cdce5a6ea05597f2e517d903568a26904c0de6c1129fe" target="_blank" rel="noopener noreferrer nofollow">snapshot</a> reveals that 196 governance token holders have cast their votes, with 77.68% favoring liquidation over migration at the time of writing.&nbsp; 
 You might also like: <a href="https://crypto.news/crypto-lending-protocol-geist-finances-ceases-operations-after-multichain-shutdown/" rel="noopener noreferrer nofollow"> Crypto lending protocol Geist Finances ceases operations after Multichain shutdown </a> 
 According to the proposal, the voting period will last for 48 hours, with two hours left before the time lapses. The Hector Network team said the reason for the timeframe was to “prevent further negative impact the Multichain hack may have on the Hector Network Treasury.” 
 <h2 class="wp-block-heading" id="hector-network-accused-of-depleting-treasury-funds">Hector Network accused of depleting treasury funds</h2> 
 The Hector Network treasury, which was once worth more than $100 million, has seen a steady depletion over time. Currently, the project’s treasury holds assets worth $16.6 million and over one million HEC tokens, all of which could be liquidated.&nbsp; 
 The defi project forked from Olympus DAO, has faced some controversies, especially regarding its handling of the treasury. 
 Community members have <a href="https://twitter.com/cryptojaza/status/1635495834681847808?t=XCUERCTTt4ktcP1vzeL_ow&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">criticized</a> the project for its continuous lavish spending of the treasury without bringing any returns to token holders, which is often referred to as “slow rugging.” In June, Hector Network reported a hack on its bridge smart contract that resulted in the <a href="https://twitter.com/Hector_Network/status/1664720154595414019?t=HBOeWTA_d6u5vhfILuzJgA&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">loss</a> of over 600,000 USDC.&nbsp; 
 As previously reported by crypto.news, Multichain suffered a bridge hack that saw the abnormal movement of over $125 million on July 6 to several third-party wallets. Following the incident, major stablecoin issuers Circle and Tether <a href="https://crypto.news/tether-freezes-usdt-addresses-linked-to-the-130-million-multichain-exploit/" rel="noopener noreferrer nofollow">froze</a> assets worth over $65 million belonging to wallet addresses associated with the hack.&nbsp; 
 The cross-chain bridging protocol also <a href="https://crypto.news/multichain-halts-operations-following-ceo-arrest-in-china-lost-access-to-servers/" rel="noopener noreferrer nofollow">halted operations</a> after Chinese authorities arrested its CEO, who had sole control of investors’ funds, and his sister, who moved the remaining assets to a wallet address she controlled. According to the Multichain team, the project could not continue to function without access to operational funds. 
 Read more: <a href="https://crypto.news/bis-report-claims-crypto-is-centralized-and-defi-amplifies-risks/" rel="noopener noreferrer nofollow"> BIS report claims crypto is centralized and defi amplifies risks </a> 
 </body>
</html>

HectorDAO affected by Multichain, votes to liquidate $16m in treasury

Table of Contents

crypto.news

Other articles published on Jul 17, 2023

Australia’s NAB flags crypto exchange payments to curb scams

Aave Overtakes MakerDAO as the Second-Largest DeFi Protocol in TVL

Litecoin (LTC) Achieves Historic Milestone Achieving 170M Ahead of Halving Event – Will It Drive ...

Grayscale’s GBTC Volume Surges to Yearly High Amid ETF Filings and Shrinking Discount

PRE-SALE OF THE NEW NFT COLLECTION: BE THE FIRST TO OWN ONE

Scorpion Casino Token, Bitcoin, and XRP: Exploring the Adoption of Crypto’s Top Utility Tokens!

Join our free newsletter for daily crypto updates!