The leaders of crypto insurance company Nexus Mutual told CoinDesk that if policyholders who suffered losses in the recent Euler Finance hack do not pay back their insurance projects, the governing body could turn to lawyers. He said there is
Nexus Mutual, one of the largest insurance platforms covering high-risk decentralized finance (DeFi) deposits, has closed the repayments from five clients who filed claims after the March incident, according to on-chain data. I’ll be waiting. These clients collectively represent approximately $2 million in cryptocurrency out of a total claim paid by Nexus Mutual of approximately $2.4 million.
The situation is that some of DeFi still relies on trust, despite crypto advocates claiming clever code could replace the most basic aspects of the traditional financial system. I am emphasizing that
Euler’s when pressed redemption The portal returned $133 million in value to 457 users, six of whom were also Nexus Mutual policyholders.Of those 6, 4 made around $380,000 in various cryptocurrencies. groupInvisible two people appear to be linked swapping Cash Redeemed for Others ciphersend they Sent to other addresses, typically degen. Their share of the pot comes to almost $400,000.
The problem is, it’s not the money they spend. According to BraveNewDeFi, Nexus Mutual’s pseudonymous head of communications, those holders agreed to return the value of their claims to Nexus Mutual if they got their money back from Euler. Euler on Wednesday began processing redemptions, including those already paid by Nexus Mutual, after Euler’s hackers returned the funds.
“This is the first billing event in which an exploited protocol has been able to recover lost funds from attackers,” said BraveNewDefi.
BraveNewDeFi said in a Telegram message that it sold 200 ETH (more than $380,000) owed to Nexus Mutual by one policyholder. CoinDesk has attempted to contact the owner of that address, but has received no response. According to BraveNewDeFi, most of his remaining eight have either been repaid to Nexus Mutual’s Decentralized Autonomous Organization (DAO) or have not yet been repaid with Euler.
Losing one six-figure payment may not have a meaningful impact on Nexus Mutual’s finances. Insurers are the strongest coverage providers in DeFi as measured by loss ratios, a metric that captures the health of the insurance business. data Edited by Richard Chen, general partner of crypto venture 1confirmation.
Still, the team at Nexus Mutual doesn’t want to lose a cent. They have been in touch with Euler and have the team add notifications to their claims portal to alert policyholders of outstanding amounts.
If that doesn’t work, litigation may follow.
“Members of the Nexus Mutual DAO have deep ties to legal professionals within the industry,” Hugh Karp, the protocol’s founder, told CoinDesk on the project’s Discord server, referring to the so-called decentralized DAO that operates the platform. You mentioned type-autonomous organizations. “Four of the nine plaintiffs have already returned their funds, and if members of the Nexus Mutual DAO feel the need to hire an attorney to pursue their remaining claims, they should.”
