Court-Appointed Insolvency Firm Takes Over HectorDAO Following $2.7M Crypto Hack

The Takeover of Hector DAO Treasury and Social Media Channels by Interpath Limited

On February 21, Interpath Limited, an insolvency consultancy firm, announced that it has taken full control of the Hector decentralized autonomous organization (Hector DAO) treasury. This includes taking custody of the DAO’s social media channels, which will now be used to communicate with investors. These announcements were made on the protocol’s Telegram channel on February 19 and 21.

Hector DAO suffered a hack in January, resulting in a loss of $2.7 million. Analysts believe the hack was either due to a compromised private key or the actions of a rogue developer. As a result, some investors have blamed the development team and have called for a neutral third-party to take control of the assets. It appears that this is now happening.

According to the February 19 announcement, the Virgin Islands High Court (Commercial Division), Eastern Caribbean Supreme Court has appointed Mr. Drury and Mr. Pretlove, both from Interpath (BVI) Limited, as joint and several interim receivers. This means that they will have control over all of the assets held by or on behalf of Hector DAO.

Interpath is a currently regulated entity and insolvency practitioner in the British Virgin Islands, according to the Financial Services Commission. This suggests that the funds will now be in the hands of professional liquidators and will no longer be managed by the Hector DAO team.

Overall, this takeover by Interpath Limited marks a significant development in the aftermath of Hector DAO’s hack in January. It remains to be seen how this will affect the future of the DAO and its investors.

Interpath Takes Control of Hector Network After $2.7 Million Crypto Hack

The recent hack of Hector Network has led to Interpath taking over the protocol’s social media channels. In an announcement, Interpath stated that they now have control of the communication channels and will provide further details on the next steps for tokenholders to address any concerns. This comes after the hack in January that resulted in a loss of $2.7 million.

The company also announced that they will be conducting an investigation into the hack and making efforts to recover the lost funds. Cointelegraph reached out to Interpath for confirmation, and the director, James Drury, personally confirmed the authenticity of the post.

Interpath Takes Custody of Hector Network’s Treasury Assets

In a second announcement on Feb. 21, Interpath revealed that they now have full custody of the Treasury assets. These assets have been moved to a new secure wallet, and the old wallet has been taken over. All previous signers have been removed, and the old signers are no longer involved in the new wallet. This means that the HectorDAO team can no longer authorize transfers from the Treasury.

The court has granted Interpath the authority to identify, collect, and preserve HectorDAO assets, but they are not yet authorized to distribute them. Final approval from the court is required for distribution, according to a recent post.

In July of last year, HectorDAO suffered a loss of over $8 million when some of its bridged tokens on Fantom lost their Ethereum collateral. This was a result of the Multichain exploit, which caused the Multichain Fantom bridge to shut down on July 14. The DAO then voted to liquidate its Treasury and return funds to investors, but as of now, the majority of the funds have not been distributed.