Stargate Foundation Recommends Not Re-Issue $STG token on March 15

Stargate Foundation Recommends Not Re-Issue $STG token on March 15

Stargate Foundation has issued a recommendation to the DAO not to re-issue the $STG token, as the FTX liquidators think this violates the automatic stay and will aggressively pursue damages.

In March 2022, Alameda purchased 100% of the $STG auction for $25m, and in November of the same year, FTX entered bankruptcy. Shortly after, FTX/Alameda wallets were hacked for approximately $500m, with liquidators eventually moving all assets to new wallets.

Stargate DAO comes to the conclusion that it is extremely likely that the keys to this wallet are compromised & shared between both the FTX liquidators/Alameda and the hacker and propose a re-issuance of the $STG token to move these funds out of this wallet and into a safe wallet. (Stargate's Proposal Regarding Reissuance of $STG Gets Passed)

However, the FTX liquidators have taken the stance that this violates the automatic stay and will aggressively pursue damages. The Stargate Foundation believes that liquidators do not have a firm grasp of the reality of the smart contracts and how they will interact with the contract to secure the funds. Despite the efforts of exchanges, protocols, and external parties to support the safety of funds, the recommendation stands not to re-issue the $STG token due to the current opinion of FTX liquidators.

 

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