Insolvency firm appointed by the court acquires HectorDAO following $2.7M cyber hack

The company has the responsibility of identifying, collecting, and protecting the assets of investors, but is unable to distribute them until an additional court order is secured.

🚀 Taking Control: Interpath Limited Assumes Custody of Hector DAO Treasury

In a surprising turn of events, insolvency consultancy firm Interpath Limited, also known as “Interpath Advisory,” has announced that it has taken full custody of the Hector decentralized autonomous organization (Hector DAO) treasury. Taking control of both the assets and social media channels, Interpath aims to communicate with investors moving forward.

🔐 Securing the Treasury HectorDAO was previously hacked for a staggering $2.7 million in January, which experts believe was either due to a compromised private key or the actions of a rogue developer. Faced with the responsibility of safeguarding investor assets, some of the DAO’s stakeholders called for the involvement of a neutral third-party. The recent actions of Interpath Advisory seem to align with these demands.

📣 Communication is Key Interpath Advisory has also taken charge of the HectorDAO social media channels, signaling their intent to actively engage with investors. The Receivers, appointed by the Virgin Islands High Court, will utilize these channels to provide further information, address concerns, and discuss all aspects of their appointment. This move is a positive step towards fostering transparency and ensuring effective communication.

⚡️ Recovering Investor Funds Aside from overseeing the treasury, Interpath Advisory intends to conduct a thorough investigation into the January hack with the goal of recovering the lost funds. This proactive approach demonstrates their commitment to protecting investor interests and seeking restitution.

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🔍 Investigation and Approvals While Interpath Limited has been granted the authority to identify, collect, and preserve HectorDAO assets, they still require “final approval” from the court to distribute the recovered funds. This regulatory step ensures a fair and legal process for distributing the assets back to the rightful investors.

💪 Learning from Past Incidents This isn’t the first setback HectorDAO has faced. Last July, the DAO suffered a significant loss of over $8 million when bridged tokens on Fantom depegged from their Ethereum collateral. The unfortunate incident was a consequence of the notorious $1.5 billion Multichain exploit, which led to the temporary closure of the Multichain Fantom bridge. Despite the DAO’s decision to liquidate and return funds to investors, the distribution process is still ongoing.

🔮 Looking Ahead: Aiding the Recovery

Moving forward, it is clear that Interpath Advisory is fully committed to the recovery and redemption of HectorDAO. With their expertise and the support of the legal system, the consultancy firm is well-positioned to navigate the challenges ahead and restore confidence in the decentralized organization.

🎯 Q&A

Q: How did HectorDAO lose $2.7 million? A: The exact cause is either a compromised private key or the work of a rogue developer. The investigation by Interpath Advisory aims to shed light on this matter.

Q: What happens to the recovered funds? A: Interpath Advisory will distribute the funds back to the rightful investors once they obtain “final approval” from the court.

Q: Will the previous signers still have access to the HectorDAO treasury? A: No, the old signers have been removed from the multisignature wallet, ensuring that the previous team can no longer authorize transfers.

Q: What is the status of the distribution of funds from the previous incident in July? A: As of now, the majority of the funds have yet to be distributed to investors. Ensuring fair distribution will be a priority for Interpath Limited.

Q: How will Interpath Advisory engage with HectorDAO investors? A: Interpath Advisory will utilize the social media channels to provide updates, address concerns, and facilitate open communication with investors.

📚 References:

• Moonwell bad debt recovery plebiscite draws user controversy
• Virgin Islands High Court (Commercial Division)
• British Virgin Islands Financial Services Commission

📣 Don’t be shy, share this article and spread the knowledge! Let’s get the word out on social media platforms. Together, we can create a safer crypto world. 🚀

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