Chainflip to Reset TRON USDT Balances Following $736,000 Exploit
- Chainflip will set affected liquidity providers’ active TRON USDT balances to zero due to a restart plan initiated after a $736,442.17 exploit on September 12.
- The exploit involved the attacker causing six liquidity-provider withdrawals to be paid twice by manipulating transaction memos.
- By September 16, Chainflip resumed swaps and quoting across its network, excluding TRON until recovery is finalized.
- A separate on-chain balance will be recorded for each provider’s pre-migration trxUSDT amount, ensuring tracking for future payouts.
- The protocol has implemented changes to prevent similar exploits by restricting which TRON transfers can include swap instructions in their memos.
Chainflip’s response includes a detailed migration plan that separates live account balances from amounts owed to liquidity providers following the exploit. This approach aims to ensure transparency and accountability as they work towards reimbursement.
With the active trxUSDT accounts reset to zero, affected providers await further updates on repayment schedules and recovery processes related to the $736,442 shortfall. (Source)
