The Stargate Foundation advises the DAO not to reissue STG tokens, and the FTX liquidators may seek compensation

ChainCatcher news, based on LayerZero's cross-chain liquidity protocol, Stargate tweeted that the Stargate Foundation recommends that the DAO not reissue the STG token. After the bankruptcy of FTX last year, the FTX/Alameda wallet experienced key leaks or internal issues, resulting in a loss of approximately $500 million due to a hacker attack. The FTX liquidators ultimately transferred all assets to a new wallet, and the keys will not be leaked to hackers. The Stargate DAO believes that the keys to this wallet are highly likely to have been leaked and shared between the FTX liquidators/Alameda and the hackers, and proposed to reissue the STG token to transfer these funds out of the wallet.

Recently, the FTX liquidators stated that if Stargate reissues and transfers funds, it will violate the automatic stay provisions and they will actively seek compensation. After consulting with lawyers, the FTX liquidators believe that the tokens are already in their wallet and no action is needed, and that the tokens will be withdrawn in one go on March 17.

Earlier reports indicated that on February 6, the proposal to reissue STG put forward by Stargate was passed with a 90% approval rate, and according to the proposal, it will be executed on March 15. (source link)