The Stargate Foundation recently advised its decentralized autonomous organization (DAO) against reissuing the native token, Stargate Finance (STG), due to concerns raised by FTX liquidators. The liquidators have expressed their belief that such a move would violate the automatic stay and could result in legal repercussions.
In March 2022, Alameda Research, a former cryptocurrency trading company, purchased the entire STG auction for $25 million. However, in November of the same year, FTX declared bankruptcy, after which the FTX and Alameda wallets were hacked for approximately $500 million. Finally, the liquidators transferred all assets to new wallets.
Stargate DAO proposed to reissue the STG token to move funds from the potentially compromised wallet to a safer one. However, FTX liquidators have rejected this proposal. They argued that such an action would be in violation of the automatic stay, which prohibits any action that would interfere with the liquidation process. Furthermore, they believe that it could result in legal consequences for the DAO.
The Stargate Foundation has taken note of these concerns and has advised the DAO against reissuing the STG token. The Foundation has emphasized the importance of adhering to legal protocols and avoiding any actions that could jeopardize the liquidation process. While it is understandable that the DAO wishes to safeguard its assets, the Foundation believes that it is important to consider the broader implications of such actions.
The Stargate Foundation has recommended that the DAO refrain from reissuing the STG token.
The Foundation believes that it is essential to prioritize legal compliance and to respect the liquidation process. While it may be tempting to take immediate action to safeguard assets, it is important to consider the potential consequences and to act in accordance with established legal protocols.
The Stargate DAO should continue to work closely with the liquidators and other stakeholders to find the best possible solution to this challenging situation.
Stargate Foundation, DAO, STG token, FTX liquidators, legal compliance, liquidation process, Alameda Research, cryptocurrency trading, wallet hack, asset safeguarding.
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