The Stargate Foundation advised the DAO not to reissue STG tokens, and the FTX liquidator may seek compensation

On March 13, Stargate, a cross-chain liquidity agreement based on LayerZero, tweeted that the Stargate Foundation recommended DAO not to reissue STG tokens. After the bankruptcy of FTX last year, the FTX/Alameda wallet suffered from key leakage or internal problems, and was attacked by hackers and lost about $500 million. The FTX liquidator will eventually transfer all assets to the new wallet, and the key will not be leaked to hackers. Stargate DAO believes that the key of the wallet is likely to be leaked and shared between FTX liquidator/Alameda and hackers, and proposes to reissue STG tokens to transfer these funds out of the wallet.

Interpretation of this information:

Stargate Foundation, a cross-chain liquidity agreement based on LayerZero, made a tweet on March 13 in which they recommended that DAO not reissue STG tokens. This recommendation comes after the bankruptcy of FTX, which resulted in the loss of around $500 million due to key leakage or internal issues. The liquidator of FTX will transfer all assets to a new wallet, which is supposed to prevent key leakage to hackers. However, Stargate DAO believes the key of the wallet is still at risk of leakage and suggests reissuing STG tokens to prevent the funds from being lost if the wallet is hacked.

The message raises concerns about the security of digital wallets used to store cryptocurrencies. In this case, FTX experienced a loss of $500 million due to key leakage or internal problems. The issue prompted the Stargate Foundation to issue a warning to DAO, advising against reissuing STG tokens. They recommend that the funds be transferred out of the wallet using another method, as the risks associated with the current wallet are deemed to be too high.

Furthermore, the message highlights the importance of securing crypto assets and the risks associated with reusing keys. Stargate DAO is concerned that the FTX liquidator/Alameda and hackers may share the leaked key, which could compromise the funds held in the wallet. To avoid such risks, the Stargate Foundation proposes to reissue STG tokens to transfer funds out of the wallet and prevent losses.

In summary, the message warns of the risks associated with digital wallets and the importance of securing digital assets. The Stargate Foundation advises against reissuing STG tokens due to concerns over the security of the FTX/Alameda wallet. They recommend that funds be transferred out of the wallet using a different method to avoid any potential risks. The three keywords that summarize the message are security, risks, and reissuing.