In July 2023, angry investors in the Hector Network project opted to “rage quit” — an option reserved by some defi projects that allows investors to vote to liquidate a project’s remaining treasury and distribute it to token holders. The successful rage-quit vote in Hector’s case came after the protocol lost $8 million in the Multichain disaster, although investors say that was only the final straw in a series of poor management choices and inflated salaries that saw the project treasury dwindle from over $100 million to around $16 million.
Now, another $2.7 million is gone after an apparent thief was able to exploit a smart contract that was intended to distribute payouts to Hector’s token holders. They then swapped the tokens from the USDC stablecoin to ETH.
Investors in the project are furious, especially because various parties had warned Hector Network about apparently insecure practices. Hector Network’s team, meanwhile, have not acknowledged the theft, although a law firm involved in the project liquidation promised a statement would be forthcoming.
This content was sourced from Web3IsGoingGreat