Huobi and Gala Games to Compensate Victims of pNetwork Hack with $50 Million
Huobi and Web3 gaming project Gala Games have announced that they will compensate victims of a hack on pNetwork that occurred last fall. The two companies have stated that they will be reimbursing victims with a total of $50 million in crypto and software licenses, with the compensation to be distributed within the next few weeks.
Huobi has pledged $25 million in compensation, consisting of $15 million in USDT and $10 million in equity. Gala Games has promised $25 million in node compensation. The reimbursement is intended for those who lost funds during the hack, which saw a large amount of GALA tokens dumped onto the market, causing the price to plummet.
#Huobi & #Gala Games have initiated a lawsuit against pNetwork. Previously, Huobi had provided $pgala users $25 million in cash and equity equivalent compensation, Gala Games will also provide $25 million equivalent in node compensation. @GoGalaGames pic.twitter.com/aePICQ5ATm
— Huobi (@HuobiGlobal) April 3, 2023
The hack was eventually claimed by pNetwork, a cross-chain bridge project for the Binance Smart Chain. At the time, pNetwork had discovered a vulnerable pGALA pool on PancakeSwap and had taken it upon themselves to attack the vulnerability to prevent malicious actors from exploiting it. However, despite the attack being a “white hat” one, the failure to communicate this to the community resulted in significant losses for GALA holders.
The compensation is just one of the measures that Huobi and Gala Games are taking to address the issue from last year. In March, Gala Games filed a lawsuit seeking $27.7 million in damages from pNetwork. Huobi has now also announced its participation in the lawsuit in order to “recover losses, protect reputation, and benefit users.”
It is important to note that this incident highlights the risks associated with investing in cryptocurrencies and decentralized finance projects, as they are still largely unregulated and susceptible to hacks and other security breaches. While the compensation offered by Huobi and Gala Games is a positive step towards remedying the losses suffered by victims of the pNetwork hack, it also serves as a reminder to investors to exercise caution when investing in this emerging and volatile market.
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