Gitcoin Suffers a $460K Token Transfer Error Loss in GTC

Gitcoin accidentally lost $460K in GTC tokens, sent to an unrecoverable contract address, prompting calls for improved accountability.
Gitcoin Suffers a $460K Token Transfer Error Loss in GTC
Gitcoin Suffers a $460K Token Transfer Error Loss in GTC

The Gitcoin developer platform has disclosed that it unintentionally sent around $460,000 worth of Gitcoin (GTC) tokens to an address from which they could not be retrieved, resulting in their loss.

The specifics of this occurrence were disclosed on the Gitcoin governance forum by the project manager, CoachJonathan, on October 6. The plan was to move GTC tokens from the platform’s bank account to pay for a request for products, memes, and advertising costs.

The tokens were delivered to a GTC token contract instead of a safe multi-signature address, nevertheless.

According to Coach Jonathan, “This has rendered the funds stuck in the contract, with no way of recovering them.”

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Each of the 521,440 GTC tokens that were misplaced was worth little under $0.90, therefore there was a loss of almost $461,000 in total.

After the transfer, the Gitcoin core developers got in touch to see whether the contract could be modified or if there was a mechanism to withdraw money. The money has been marked as lost because they confirmed that neither of these alternatives was an option.

The team has expressed their intentions to prevent such mistakes from happening in the future and to create a more open system of accountability in the event that another incident of this nature occurs.

Large token holders and signers with multiple signatures, such as me, have an obligation to exercise extra caution while handling monies that do not belong to them.

The Gitcoin researcher Umar Khan proposed on the forum that DAO regard the lost tokens as a reduction in GTC supply rather than a loss of treasury cash in order to avoid any confusion.

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