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HEC

The HEC Token is the primary utility token for that worked alongside its counterpart, the . HEC, the world's first non-dilutive rebase token, was used for governance, , bonding,  TOR tokens, , wrapping assets, and trading on the Hector DEX. This ensured that HEC holders could engage with the network without diluting the token's utility or value. [1]

The Hector Network entered into liquidation mode in July 2023 after the project reportedly lost $8 million worth of  assets. This loss occurred when funds were removed from the treasury of the crypto bridge protocol, . [3][4]

Hector Network (HEC)

Hector Network was a  (DAO) and  ecosystem that comprised the HEC utility token and its complimentary  token, [4]

In July 2023, the network's treasury worth $16 million entered into liquidation mode with a majority vote from the Hector Network community. This was due to the collapse of bridge provider  which caused the network to reportedly lose $8 million worth of  assets. [3]

Following  collapse which occurred due to the detention of Multichain's CEO Zhaojun and his sister by Chinese police, the Hector Network community voted to liquidate the treasury and distribute the proceeds to HEC token holders. [3]

“Hector Network has suffered significant damage to its ability to operate,” a community manager with the screen name MayoMyke wrote in the project’s Discord on July 14, 2023 [5]

On January 18, 2024, the Hector team announced on its website that there was a security breach when the protocol was redeeming token holders as part of the liquidation, and approximately USDC 2.7 Million was stolen on 15 January 2024. [3]

As a result of the breach, the team has postponed the redemption process. [4]

"Preliminarily, the redemption process is expected to resume when the investigation is complete and the redemption process has been fortified against further potential vulnerabilities. Hector Network is working tirelessly to address this, is committed to maintaining transparency throughout this process and will keep you updated on any developments" - the update concluded[4]

On February 19, 2024, the Eastern Caribbean Supreme Court appointed Mr Drury and Mr Pretlove from the firm, Interpath (BVI) Limited to take full custody of the Hector DAO treasury. According to announcements on February 19 and 21, 2024, on the protocol's Telegram channel, the company has also taken control of the Hector DAO's social media channels to communicate with investors going forward. [6]

“The Receivers have taken full custody of the treasury assets, which have been moved to a new secure wallet,” James Drury, an Interpath BVI director overseeing the receivership, told DL News.[6]

In addition, Interpath is also tasked with conducting an investigation into the January hack and attempting to recover investors’ funds. [7]

In March 2024, it was revealed that a group of investors under Newton AC/DC LP filed a lawsuit in the US to freeze the project’s funds. The lawsuit was filed days before Hector Network went into receivership. James Drury told DL News that the decision to appoint Interpath was taken without knowledge of the US court proceedings. Interpath says the lawsuit will come at a significant cost to Hector tokenholders. The suit also alleged that Hector DAO principals misspent treasury funds and failed to protect the project’s reserves from malicious exploits. As such, investors are left with only $9.3 million to share among themselves when the project was worth over $100 million in its heyday two years ago. The lawsuit is still ongoing. [8]

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HEC

Commit Info

Edited By

0x212Cb3F4aE6611054637f9f78F18fB628AD258bb
zainab

Edited On

March 18, 2024

Reason for edit:

added recent legal news

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