Incident of October 25th
Dear Aarkadians,
We are reaching out with a detailed update on the recent exploit incident that impacted our platform. The entire Aark team is fully committed to recovering the stolen funds, stabilizing the situation, and ensuring transparency with our valued community throughout this challenging time. Here is a comprehensive breakdown of our findings, actions taken, and plans moving forward.
Amendment on Stolen Funds
Initially, we reported a total loss of 1,386,085.5 USDC and 24.143 ETH due to the exploit. However, further investigation has revealed that the actual amount stolen was higher, totaling 1,499,841 USDC and 159.09 ETH. This revised amount provides us with a more accurate scope of the breach, which is essential for our recovery strategy.
Recovery Actions Taken So Far
Our team has taken multiple robust steps to trace and recover the stolen assets:
Ongoing Monitoring and Analysis
We have partnered with third-party security experts, including leading security firms and white-hat professionals, to monitor the exploiter’s activities and track fund movements.
To incentivize assistance from the broader crypto community, we have launched a bounty program on Arkham, rewarding anyone who can provide actionable intelligence that helps recover the assets.
Collaboration with Major CEXs
We are working closely with top centralized exchanges, including Binance and its affiliates, to identify, freeze, and halt further illicit transfers of the stolen assets.
Legal Action
Our team is in active communication with law enforcement agencies to support a legal response against the exploiter. We are providing all necessary documentation and transaction trails to assist in this effort.
Important Discoveries
Our investigation has revealed that the stolen funds were divided and transferred into three primary wallets:
- 0x58f87E302371550f7F525aFD96086731D05dd582
- 0x64aD619e56611148A19Bb8f89EC7251e0Df791Bd
- 0xCF87FCa11DF4185760B92056c68f3e52ee54bE33
This exploit is not a typical white-hat action in the interest of public security; it is, instead, a malicious act carried out with the clear intent of personal gain. We are actively tracking these wallets and gathering evidence of laundering attempts, which we are sharing with investigators and security partners in real-time.
Current Status of the Team
In light of this exploit, we have initiated a restructuring plan within the Aark team. To prioritize recovery and sustainability, we have decided to suspend salary payments indefinitely. Despite these circumstances, every team member is wholly dedicated to resolving this issue. We remain committed to the Aark community and continue to collaborate closely with experts, giving us hope for a successful recovery of the stolen funds.
Thank you, Aarkadians, for your continued support and understanding as we navigate through this challenging period.
Refund Plan for Affected Users
The stolen funds represent approximately 67% of the total deposits, including collateral for Futures and LPs. Given the scale of the impact, we are currently able to refund 33% of the original deposit amount to affected users. Here’s the detail on how you can claim the refund:
Claim Process on Aark Digital Page
- We are developing a Claim page on the Aark website. On this page, affected users can enter the wallet address they used to deposit funds to view the refund amount they are eligible for. By clicking “Claim,” the refund will be transferred directly to their wallet. We will make an additional announcement once the Claim page is deployed on the website. Please note that the refund amount under $1 value is not subject for the claim.
However, we are committed to providing additional compensation as we recover more funds from the exploiter:
Monthly Refunds Based on Fund Recovery
- Once a month, as recovered funds are secured, a proportional distribution will be made to all affected users based on their original deposit shares.
We remain steadfast in our mission to restore Aark Digital and compensate our loyal users. This process requires patience, but please know that our team is working around the clock to bring this situation to a positive resolution.
Thank you for standing with us during this time.
