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Allbridge hack aftermath: Platform set to begin compensating these victims first

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  • Cross-chain platform Allbridge will begin compensating users that were affected by the recent bridge exploit.
  • Users who had their transactions stuck following the exploit will be prioritized for repayment.

Cross-chain hub Allbridge is set to repay its users who were affected by the bridge exploit. The incident in question took place earlier this month. The exploit, which occurred on Allbridge liquidity pools on BNB Chain, drained more than half a million from BUSD/USDT pools. 

Users with pending transactions will be prioritized

According to the recovery plan shared by Allbridge on Medium, the platform has only been able to recover a partial amount of the lost funds. However, they have enough to begin the compensation process. Bridge users who had their transactions stuck due the emergency shutdown enforced after the exploit will receive repayments first. 

Liquidity providers will be the next to receive their compensations. Most liquidity providers could withdraw their funds after the liquidity pools opened up earlier this week. However, some of them were unable to withdraw their funds.

The pool’s disbalance also allowed some users to withdraw a higher amount than they were eligible for. The platform added that all the affected parties by the exploit will be subject to additional rewards in the future.

“We aim to fully compensate those victims of the exploit with funds available to us. We are drafting the application form for the LPs who couldn’t withdraw their assets to indicate the details of their loss and apply for compensation. The form will be prepared within the next two days,” Allbridge said in a statement. 

The compensation plan came days after the platform was hit by an exploit that drained over $570,000. A post mortem of the liquidity pools exploit revealed that vulnerability that made the attack possible, may extend to pools other than the ones on the BNB Chain.

The attacker has already returned 1500 BNB, with the rest going towards their bounty. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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