Research conducted by SOMA Analytics
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Crypto Fundraising DAO Loses Over $7M in Latest Crypto Exploit
In August 2021, DAO Maker fell victim to a hacking incident resulting in a loss of $7.38 million. The targeted funds belonged to users who had entrusted their deposits to the DAO Maker smart contract, primarily for participation in Strong Holder Offerings (SHOs). At that time DAO Maker kept custody of user funds on their smart contract while failing to create any security measures, while at the same time failing. to obtain or even apply for any license allowing them to custody funds, especially such large sums.
<aside> 🔴 A total of 5,521 individuals were affected, experiencing an average loss of $1,250 each.
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In response to the security breach, DAO Maker pledged to compensate the affected users. The compensation plan involved a combination of the USDC stablecoin and USDR, an IOU token. Users were assured that they could redeem the USDR token a year later for 110% of its original dollar value.
Following the security breach, DAO Maker's CEO, Chris Zaknun, addressed the hack in an interview with Incrypted, a prominent CIS crypto media outlet. In the interview conducted in English, Chris assured the public that affected individuals would be fully reimbursed.