TheBlock
Velocity, formerly Drift, has opened claims for users who lost funds in its April exploit. Users can claim one DFX recovery token for each USDT lost, but each DFX currently redeems for just over 0.01 USDT, returning a little more than one cent per dollar. On Friday, its dashboard showed 216,480 DFX redeemed for roughly 2,250 USDT from a recovery pool holding 3.11 million USDT in protocol assets.
Why it matters
Claimants can redeem and burn DFX for USDT, sell the tokens on the secondary market, or hold them in hopes of a larger payout as funding enters the pool. Burning tokens reduces the number of DFX sharing future deposits, but holding does not guarantee full reimbursement.
Velocity plans to direct 60% to 90% of net protocol revenue into the pool. After the first day, that had added 31 USDT. The dashboard had not yet recorded a contribution from Tether, which committed up to $127.5 million to support the relaunch and user recovery, or up to $20 million pledged by strategic partners.
Market impact
The Drift Foundation said roughly $295.4 million was stolen in the April 1 attack. Cybersecurity firm Mandiant identified the attacker as UNC6862, a North Korean threat group. Three attacker wallets still held 107,165 ETH worth nearly $286 million, while a fourth moved 23,094 ETH through Tornado Cash in July.
About $9.2 million in stolen funds has been frozen, according to the foundation. Those assets could enter the DFX pool if cleared by law enforcement. For claimants, the key measure is how much funding actually reaches the pool, not the amount pledged or frozen.
Frequently asked questions
-
How are DFX claims calculated?
Users who lost funds in the April exploit can claim one DFX recovery token for every USDT lost.
-
What can claimants do with their DFX?
They can redeem and burn DFX for USDT from the recovery pool, sell it on the secondary market, or hold it for a possible larger share of future deposits.
-
How much has the recovery pool paid out so far?
On Friday, Velocity's dashboard showed 216,480 DFX redeemed for roughly 2,250 USDT. Each DFX could then be redeemed for just over 0.01 USDT.
-
Have Tether and strategic partners funded the pool?
The dashboard had not yet recorded a contribution from Tether's commitment of up to $127.5 million to support the relaunch and user recovery, or up to $20 million pledged by strategic partners.
-
Could frozen stolen funds increase reimbursements?
The Drift Foundation said about $9.2 million in stolen funds had been frozen. Those assets could enter the DFX recovery pool if cleared by law enforcement.
WuBlockchain
CoinTelegraph
CryptoSlate
CoinDesk
Lookonchain
Crypto Rank News