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Seventh Open Letter to Alpha Homora Depositors

Based on Iron Bank’s (IB) response to the 6th Open Letter, IB did not pick any solution. This means the default path forward (“Original Plan B”) would be to stop negotiating and move forward with the understanding that IB does not cooperate. In this path, Alpha Homora will stop negotiating with IB on behalf of depositors and set up a separate fund as a goodwill gesture for depositors since funds are stuck in IB. IB will have 120 hours, from when the Original Plan B is chosen as a next step, to unfreeze the depositors’ funds before Alpha and users work together to take legal action against IB.

Since IB responded, Alpha Homora did not take any stance immediately and made sure to hear depositors’ suggestions and feedback because in the end these are depositors' funds. After getting all the feedback, depositors are split between these 2 paths forward.

Path 1

  • Many depositors suggest we move forward with the Original Plan B.

Path 2

  • Many depositors suggest Alpha Homora negotiates on behalf of depositors one last time with a new solution that they propose. If IB does not accept the new solution, the path forward is to go with the Original Plan B.
  • The solution that depositors suggesting Path 2 are proposing is for Alpha to help facilitate the swap of 63M ALPHA (the collateral) and 4M USDC. IB receives 4M USDC and releases 100% of the USDC market. Though Alpha and IB’s ties would end as ALPHA collateral is used, Alpha will set up a separate fund as a goodwill for ETH, USDT, and DAI depositors.

As a next step, within 24 hours, these 2 paths will be put up for depositors to vote and open the vote for 48 hours.

Separately, there will be an AMA session on Discord on April 21st, 1am UTC.

Hacker

We have got valuable advice from both the Euler and Sentiment teams on ways to trace the hacker’s identity and to pressure the hacker to return the stolen funds. We are following their suggestions closely and will update the community accordingly, as sharing all details now can put us in an inferior position.

As a recap, since the exploit in 2021, Alpha has taken the steps we can to chase down the hacked funds. We have notified centralized exchanges of the exploiter addresses, worked with top security firms to find trails, set up a monitoring system to track fund movements, contacted AAVE and Curve teams to find resolutions since the hacked funds are deposited into these protocols.