Major Crypto Platforms Ask for $71M Release to Fix Hacking Damage

Major cryptocurrency platforms are asking for $71 million in frozen funds to be released to help victims of a recent hack.

Last week, hackers stole approximately $292 million from Kelp DAO (a crypto investment platform). In response, the Arbitrum network (a blockchain system) quickly froze $71 million that belonged to the hackers before they could move it.

Now, several major crypto companies including Aave (a lending platform), Kelp DAO, and LayerZero (a messaging protocol) have joined forces. They're asking Arbitrum's community to vote on releasing these frozen funds.

Here's what they want to do: • Use the $71 million to help repay hack victims • Create a special account controlled by three companies for safety • Return funds to Arbitrum if the plan doesn't work

The hackers had deposited 89,567 ETH (Ethereum cryptocurrency) on Aave's platform. By freezing and potentially redistributing these funds, the companies hope to make victims whole again.

However, there's a catch: the voting process could take up to 49 days, which some people think is too long given the urgent situation.

This case shows how the crypto community can work together to fight hackers and protect users, though the slow decision-making process highlights ongoing challenges in decentralized systems.

This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/398882/aave-kelp-layerzero-ask-arbitrum-dao-to-release-71-million-in-frozen-eth-to-rseth-recovery-effort?utm_source=rss&utm_medium=rss