After around 2 million EOS tokens were allegedly lost to a hacker, the assets were confiscated following a thorough investigation and recovery process.
PayCash, an EOS project, faced a huge challenge when it found a loss of almost $1.8 million. However, EOS operates differently, with a dedicated asset recovery team known as Recover+ (R+) intervening to combat on-chain crimes.
The rehabilitation process was lengthy, lasting 10 months, and included numerous technical and procedural challenges. Notably, the hacker transferred the stolen cash to the EOS EVM chain, which had previously not seen successful asset retrievals. An upgrade to the EOS EVM in September aided recovery efforts.
The event occurred on May 6 of the previous year and required a protocol upgrade, a multisig proposal, and agreement from the majority of Block Producers (BPs) to be resolved.
Finally, the PayCash team presented a solution in January and tested its efficiency on the Jungle testnet.
According to a press release from The Crypto Times, the assets were successfully restored in February with the help of EOS engineers and Block Producer clearance.
While many DeFi exploits go unsolved, EOS’s system, despite its reliance on BP approval, does provide a mechanism for asset recovery in some circumstances.
In 2023, DeFi exploits lost $1.7 billion, indicating a rising trend despite a reduction from 2022. Most hacks result in unrecoverable assets, which are often hidden by mixers such as Tornado Cash. EOS distinguishes itself with a mechanism for asset recovery via majority acceptance of BPs.
The Recover+ team went to tremendous pains to reclaim control of the funds held in 6,000 wallets on the EOS EVM. Despite the obstacles, they eventually succeeded, causing PayCash to release an open letter, which concluded:
“As a sign of our appreciation and commitment to creating a more secure blockchain environment, we commit to donate 5% of all recovered funds to further support and develop the Recover+ project.”
This program emphasizes blockchain hazards, highlighting the scarcity of such resources and the need of projects like Recover+ in strengthening security and protecting communities from threats.
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