One of the first Polkadot parachains – Acala – recently rolled out a form of wrapped bitcoin and a yield-bearing liquidity pool for aUSD , which contained a bug that was immediately exploited by hackers resulting in 1.2 billion aUSD being minted without collateral.
Following the attack, the protocol launched a report this week detailing the exploit along with its proposal to recover the billions of dollars worth of aUSD. However, KuCoin has alleged that a great part of the important information related to the CEX in the report and the proposal is not accurate.
According to KuCoin’s latest release, the total number of aUSD error mints sent to the exchange is 8.03 million, rather than 4.937 million, as reported in the community proposal. It also further noted that the total number of aUSD error mints trading on the KuCoin exchange was incorrectly stated as 1 million instead of 5.33 million.
KuCoin stated that if the current proposal with alleged flawed data has been executed, it would mean that more than 4.33 million aUSD tokens that were held by the token holders will be frozen and some even burnt. KuCoin added that this may result in “tremendous damage” to the Acala community and the price of the token.
KuCoin suggested the Acala team reconsider its community’s proposal and added; “Given the significant difference in the amount of aUSD error mints deemed necessary to re-collateralize, it is suggested that the Acala community reconsider the current proposal together with the Acala Foundation. In the interests of protecting users, KuCoin is willing to continue to provide support to the Acala community and the Acala Foundation. And with our joint efforts, we hope the incident can be resolved soon while ensuring that no innocent user suffers any loss.”
The exploit triggered a crash of Acala Network’s aUSD stablecoin which rapidly depegged by over 99%. In response to the situation, the team froze the erroneously minted tokens by placing the network in maintenance mode to protect users and the network from any further attack. The move paused all other features as well, including swaps, xcm (cross-chain communications on Polkadot), and the oracle pallet price feeds.
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