Stargate to Reissue STG Tokens Following Alameda Wallet Hack

https://www.coindesk.com/business/2023/02/01/stargate-to-reissue-stg-tokens-following-alameda-wallets-hack/

Decentralized finance (DeFi) protocol bridge Stargate has proposed to reissue all Stargate (STG) tokens, according to a Wednesday blog post.

Stargate will reissue STG on March 15. The reissue will “eliminate the risk of illegitimate STG transfers from compromised Alamada wallets,” according to Stargate DAO.

Calls for the reissue come after StargateDAO uncovered a “significant threat” to its protocol owned liquidity (POL) and token holder security originating from security vulnerabilities at the failed crypto quant trading firm Alameda Research.

Alameda purchased 10% of the total STG supply from a Stargate Community sale in March 2022. Alameda promised to lock up the tokens until March 2025 but became embroiled in controversy for illegally borrowing user funds from its sister company, crypto exchange FTX, some months later.

Recent on-chain transfers from Alameda wallets indicate Alameda does not possess full control of its wallets and that a bad actor is siphoning off the wallets’ funds.

STG’s price has shot up roughly 14% to a high of 72 cents over the past 24 hours.