Acala retrieves 2.97 billion USD stablecoins that were created during an exploit


Acala, a parachain based on Polkadot, has recovered about $2.97 billion from 16 addresses that mined $3 billion Acala USD (aUSD) in a security breach on Sunday.

Due to a coding issue in one of Acala’s smart contracts, the iBTC/aUSD liquidity pool was compromised. The mistake enabled certain Acala liquidity providers to create its native stablecoin and transfer them under their possession without authorization.

According to the study, 99.9% of these “error mints” stayed inside Acala network addresses. This team paused the Acala chain and was able to freeze the stablecoin-holding addresses.

The team was able to recover 1,292 billion aUSD after putting the network in maintenance mode on Monday. This amount was burnt after the fast passage of a governing vote.

In its most recent update, the team reported recovering an additional $1,682 billion aUSD, bringing the total amount recovered to $2,974 billion aUSD. This extra money of $1,682,000,000 USD is anticipated to be burnt before the team repairs its network. Meanwhile, 48 million aUSD, including newly-minted aUSD that were traded and moved to other blockchains, have not yet been retrieved.

The event created significant price volatility in the USD. On Sunday, its value plunged to less than 0.01, falling by more than 99%. Since then, the stablecoin has rebounded and is trading at $0.90 at the time of writing.

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