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Bitrue has been exploited for roughly $24.4 million in tokens, the exchange confirmed on Twitter.

“We have identified a brief exploit in one of our hot wallets on 07:18 (UTC), 14 April 2023,” the exchange tweeted, adding: “We were able to address this matter quickly and prevented the further exploit of funds. We take this matter seriously and are currently investigating the situation.”

The exchange explained that attackers were able to withdraw assets in ether, QNT, GALA, SHIB, HOT and MATIC — but only exploited a hot wallet that holds less than 5% of its overall funds. “The rest of our wallets remain secure and have not been compromised,” it stated.

The tokens are currently held in an address starting with 0x181.

The exploiter swapped for 8,858 ether but kept most of the stolen SHIB and HOT tokens.

This story is developing and will be updated with more information.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

In a shocking turn of events, Zipmex’s rescue investor now wants to give only 10 to 20 cents on the dollar to the troubled exchange’s creditors. It initially pledged to provide 100% payment.

“We are instructed that in early April 2023, the Subscriber has now verbally represented that the Subscriber is now only prepared to consider a compromise to creditors in the Schemes that results in a return to creditors of between 10c to 20c on the dollar of their existing debt,” Zipmex’s lawyers, Morgan Lewis Stamford, wrote to the Supreme Court of Singapore on Thursday in a letter that The Block obtained.

Zipmex did not name the investor in the letter, which was also sent to its creditors. Still, The Block has previously reported that V Ventures initially signed a $100 million deal with the company late last year in return for a 90% stake in it. Last month, V Ventures missed a fourth tranche payment worth $1.25 million to Zipmex — leaving the company unable to pay specific staff and at risk of liquidation. That tranche still hasn’t arrived, a source with direct knowledge of the matter told The Block.

Zipmex ran into trouble last July when it halted client withdrawals due to its exposure to Babel Finance and Celsius — two beleaguered crypto lenders that themselves froze customer funds in June. Zipmex has estimated its total exposure to Babel and Celsius to be $53 million.

As the deal with V Ventures increasingly appears at risk of falling through, Zipmex “has identified at least two potential investors” in Thailand, per the letter.

Zipmex has until April 23 to sort out its financial issues, when its protection from creditors expires. The company plans to apply for a further extension, per the letter.

Zipmex did not immediately respond to The Block’s request for comment.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

With only one day remaining for governance votes to be cast, Arbitrum Improvement Proposal 1.05 — which aims to return 700 million ARB tokens “unjustly allocated to the Foundation from the DAO” — is slated to fail by an overwhelming majority.

As of this writing, 113 million Arbitrum governance tokens — representing more than 83% of the total vote — have voted against the proposal. 20 million ARB tokens have voted for the proposal, while 2.2 million have abstained.

What is Arbitrum Improvement Proposal 1.05?

Titled “AIP 1.05: Return 700M $ARB to the DAO Treasury [REAL],” the Arbitrum governance proposal claims that the pre-emptive and unapproved allocation of 700 million ARB tokens — worth more than $1 billion — “was a clear overreach of the DAO’s power of treasury resources.”

The drama started during the first weekend in April, when the Arbitrum Foundation backtracked on a key governance proposal, AIP-1, that controversially planned to send 750 million ARB tokens to itself — which it claimed would be used to fund investment initiatives built using Arbitrum’s technology.

The proposal seemingly went ahead without the approval of token holders — the decentralized autonomous organization that theoretically governs Arbitrum — who voted overwhelmingly against the proposal.

AIP 1.05 claims it “is a symbolic gesture to demonstrate that the governance holders ultimately control the DAO, not the Arbitrum service provider nor the Foundation.”

Why is AIP-1.05 failing?

Prominent token holders voting against AIP-1.05 include “0x0eB5,” olimpio.eth, 0xBbE9, galxe.arb, chainlinkgod.eth and blockworksres.eth — all of which have voted with millions of ARB tokens.

Possible reasons for accounts voting against the proposal include a belief that small voters may be solely interested in maximizing the price of Arbitrum’s governance token. At the same time, large holders — primarily delegates — are more focused on long-term sustainability and the Arbitrum Foundation’s ability to distribute tokens.

Others may view the proposed forced buyback as an “extremist approach” that is a call for attention rather than a realistic option.

Setting an example for optimistic rollups’ governance

Whichever side one is on, one thing is sure: DAO governance, as a whole, will remain a hot topic for the foreseeable future.

“I think that this is pretty impactful,” Arnold Toh, research analyst at The Block, said, explaining: “The fact that there is still a hotly debated matter shows the ramifications of Arbitrum’s unsolicited actions will continue to pervade their governance for the foreseeable future.”

“Arbitrum is the largest Optimistic Rollup — both in total value locked and in valuation — meaning that how its governance pans out will likely set an example for many other rollup communities ahead,” Toh added.

The price of Arbitrum’s governance token is up 24.4% over the past 24 hours. It is currently trading at more than $1.50 per token.

The price of Arbitrum’s governance token has increased substantially over the past week. Source: TradingView

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.