Stargate Halts STG Token Reissue Amid FTX Liquidator Concerns
- Stargate, the developer of the STG token, has advised against reissuing the token
- This decision is based on concerns raised by FTX liquidators, who have expressed reservations about the potential legal and regulatory implications of a token reissue
- The STG token will therefore not be reissued, and holders of the token are advised to take appropriate steps to manage their investments
Stargate has issued a warning against the re-issuance
of STG token due to concerns regarding the FTX liquidator
Stargate Foundation has advised against reissuing Stargate Finance's (STG) native token due to concerns raised by FTX liquidators. The liquidators are of the opinion that doing so would be a breach of the automatic stay, which could have serious legal consequences.
In March 2022, Alameda Research purchased the entire STG auction for $25 million. However, in November of the same year, FTX declared bankruptcy, and FTX and Alameda's wallets were hacked for roughly $500 million. The assets were eventually moved to fresh bank accounts by the liquidators.
Because of this, Stargate DAO wants to reissue the STG token so that the funds can be moved from the vulnerable wallet to a safer one. But the people in charge of closing down FTX have turned down this idea.
The Foundation continues to urge against reissuing the STG token in light of the opinion of FTX liquidators, despite its best efforts to assure the safety of the money. According to a Stargate tweet, "nothing in any engagement the foundation has had with the liquidators shows that they have a strong grasp of the realities of the smart contracts, how the contracts operate, or how they'll interact to secure payment."
The foundation believes that reissuing the token would not violate the automatic stay and that the liquidators' concerns are unfounded. However, they are not willing to risk the safety of their decentralized autonomous organization (DAO) and the potential legal repercussions.
It is important to note that the STG token is not the only asset at risk in this situation. Exchanges, protocols, and external parties have also been affected by the FTX liquidation and hacking incident. Therefore, it is crucial for all parties involved to work together to ensure the safety and security of all assets involved.
In summary, Stargate Foundation has advised against reissuing the STG token due to concerns raised by FTX liquidators. The foundation believes that the liquidators' concerns are unfounded but is not willing to risk the safety of their DAO and the potential legal repercussions. It is crucial for all parties involved to work together to ensure the safety and security of all assets involved.
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