Today, the Sentiment team announced plans to reimburse affected users 100% of their lost funds. First, a group of independent contributors, with Sherlock covering $49,275.77 of USDC and Nexus Mutual providing $16,425.26, has insured a total of up to $65,701.03. Subsequently, combined with the 90% of funds recovered from the hacker, it was decided to use the Sentiment treasury's funds to pay out the difference to make all users whole. According to their plan, 100% of the funds stolen will be recovered and users will get their tokens back.

The Sentiment protocol suffered a significant blow on April 4, 2021, when it was hacked. The hacker inflating a Balancer liquidity pool and exploiting a flaw in the protocol, he managed to borrow against a higher asset price and left Sentiment with a total of nearly 1M US dollars in bad debt. The hacker was then able to steal $463,920, $363,303 and $125,804 in USDC, USDT and FRAX stablecoins, as well as Ethereum tokens worth over $152,938.06. However, the team managed to negotiate with the hacker and he returned 90% of the funds misappropriated, amounting to $872,724.60.

The Sentiment team are now in the process of reimbursing users 100% of their lost funds. The team announced a reliable recovery plan which was able to be facilitated by Sherlock providing $49,275.77 in USDC and Nexus Mutual an additional $16,425.26, amounting to an insured total of $65,701.03. After this was combined with the funds recovered from the hacker, the Sentiment team decided to use the internal treasury to pay out the difference as necessary to get users to where they started.

It is amazing to see the team working so hard to ensure a full and fair refund to their users. Special thanks go to @wintermute_t, who were instrumental in making this plan a reality.



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