Non-custodial asset management protocol Babylon Finance att . ceasing operations followingack who stole $80 million.
“Despite our efforts, we have not been able to reverse the negative momentum caused by the RIRI/FEI hack,” founder Ramon Riquero shared on Medium.
Babylon is an Ethereum (ETH) based protocol that allows users to create an investment community called Garden and provides yield income.
Recuero then explained what action the company plans to take to halt operations and return funds to users. These include returning both vested and non-invested tokens, removing all liquidity from the Uniswap pool, consolidating all remaining Treasury holdings, and distributing them between BABL and hBABL holders.
It will no longer be possible to build more gardens, and the team also says they will continue to work until all funds in the gardens at the time of the hack are reimbursed.
“We believe that the responsible and ethical thing to do is to close the DAO and return all remaining assets to BABL and HBABL holders,” Riquero continued.
The founder also said that the team is working without pay, trying to get the previous Total Value Locked (TVL) growth back on track. “We couldn’t get there,” he admitted.
All operations, including the official site and Babylon’s Discord, will be closed on November 15th.
In April, Babylonian Rari Capital, which had previously merged with the FEI Protocol, suffered an $80 million hack. Bad actors exploited a reentry vulnerability in Rari’s Fuse Lending Protocol, the same vulnerability used in the Compound DeFi protocol attacks.
To remedy the situation, the company offered a $10 million reward if the hacker returned the remaining funds, “no questions asked.”
Prior to the Raari hack, the project was able to reach 30 million in TVL and had 1,500 depositors.
Babylon was launched in 2021 by a team with experience working at Google, Y Combinator, Telefonica and OpenZeppelin.
The platform raised $1.9 million from investors, including Harvest Finance, Meltem Demirors, DeFi Alliance, Joseph Young, and others. The company has positioned itself as “the first decentralized asset management protocol where deposits are owned and led by the community.”
After the announcement, Babylon Finance[BABL]The coin is down by 95%.