Stargate Proposes to Reissue $STG to Eliminate Risk of Alameda's $STG Being Stolen

Cross-chain protocol Stargate released a governance proposal, proposing to reissue $STG to eliminate the risk of illegitimate $STG transfers from compromised Alamada wallets.

Stargate said, on March 17th, 2022, Alameda purchased 10% of the total $STG supply from the Stargate Community sale, then publicly committed to locking up all the tokens until March 2025. Recent on-chain transfers from known Alameda wallets reveal that Alameda does not have full control of its wallets and that a malicious actor or hacker is misappropriating Alameda's funds. As a result, Stargate needs to reissue tokens to eliminate the risk of $STG being misappropriated, in an effort to protect token holders.

Stargate proposed to reissue $STG on March 15th, and to take a snapshot of all user balances on the same day. New $STG will be airdropped to holders of the old tokens on a 1:1 basis. The token sold to Alameda will be custodied in a designated mutisig wallet.