Sunday, July 21, 2024

KuCoin shows flaws in Acala’s community proposal.

KuCoin has noted flaws in DeFi network Acala’s community proposal to recover billions of dollars worth of aUSD which was erroneously issued during a mid-August exploit. The Seychelles-based crypto exchange found that much of the important information related to the CEX in the proposal is inaccurate – the number of a aUSD error mints sent to KuCoin and the number of aUSD error mints traded on KuCoin, among others.

KuCoin says the information may not lead to the best solution for the Acala community. In an official blog post, the crypto exchange said it has no intention to intervene in the governance of the Acala community. It advised the DeFi network to reconsider the proposal given its resilience to possibly inaccurate data. KuCoin said the freezing and burning aUSD tokens, actions the community took after reviewing the data, could cause tremendous damage to the Acala community and the price of the aUSD token.

The blog post says a large number of users deposited aUSD error mints into KuCoin after the incident. This resulted in the depegging of aUSD from $1, and the AcalaSwap and Acala chain was paused. The Acala Foundation asked KuCoin for help to temporarily freeze accounts that are associated with the aUSD incident to prevent any further transactions of aUSD error mints. As such, the platform temporarily halted two batches of suspicious amounts on August 14 and August 18. KuCoin requested the Acala Foundation to provide a to plan to depose the aUSD error mints and solve the aUSD depeg issue as soon as possible.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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