Acala Network’s stablecoin, aUSD, has been delisted and “disqualified” by KuCoin after a misconfiguration error caused the incorrect minting of aUSD tokens in 2022.
KuCoin, a crypto exchange, has decided to compensate token holders for their losses by implementing an “acquirement plan”. This plan aims to address the issue and provide restitution to affected users.
The incident occurred in August 2022 when Acala mistakenly minted 3 billion aUSD tokens in its liquidity pool. In response, KuCoin halted deposits and withdrawals of aUSD and categorized the asset as “Special treatment” for investigation purposes.
Acala Project released a comprehensive trace report in September 2022, but a solution to the problem seemed unlikely even after two years. Therefore, KuCoin has taken the initiative to launch the acquirement plan for users holding aUSD.
KuCoin has stated in an official blog post that aUSD holders must apply for the acquirement plan between now and June 23. Eligible holders will have their aUSD tokens converted to USDT, which will then be deposited into their accounts within 15 working days.
To be considered for conversion, users must complete and submit the application forms for acquirement before the deadline. The conversion price will be based on the average price of the aUSD/USDT trading pair in the 30 days leading up to its closure.
Acala Network, the Polkadot-native DeFi protocol, has not yet commented on KuCoin’s acquirement plan.
In the midst of this incident, Acala Network’s native token, ACA, experienced a 1.91% drop in value, trading at $0.1021, according to CoinMarketCap data.
In other crypto news, Dora Factory has raised $10 million in strategic fundraising to enhance adoption and expand its operations.