Hacked Altcoin Recovers $2.97 Billion: Its Reset Price Increased 8500 Percent!

Acala, a parachain project on Polkadot, has 3 billion dollars in a security incident last Sunday. Acala USD (aUSD) altcoin announced that it had recovered approximately $2.97 billion from 16 addresses that minted.

Vulnerability in Acala Ecosystem Leads to Billions of Dollars in Stablecoins

The incident occurred due to a code error in one of Acala’s smart contracts that manages the iBTC/aUSD liquidity pool. The mistake had allowed some Acala liquidity providers to print their native stablecoins and illegally pass them on to them.

According to the team, 99% of these “misprints” remained at addresses on the Acala network. The team stopped the Acala chain and managed to freeze the addresses holding the minted stablecoin.

After putting the network into maintenance mode on Monday, the team was able to recover aUSD 1.292 billion. This sum was burned after a management vote passed quickly.

Altcoin Team Still Hasn’t Recovered $48 Million

The team recovered another 1.682 billion aUSD in its latest update, bringing the total recovered amount to 2.974 billion aUSD. This additional AUSD 1.682 billion is also expected to be burned before the team restores the network. Meanwhile, 48 million aUSD has yet to be recovered, which includes minted aUSD that has been exchanged and transferred to other blockchains.

The event caused a tremendous fluctuation in the aUSD price. CryptocurrencyThe coin had momentarily dropped below 0.01 on Sunday, losing more than 99% of its value. The stablecoin has since recovered and is trading at around $0.84 at the time of this writing.

*Not investment advice.