Stargate Foundation Advises DAO

The Stargate Foundation, together with the FTX liquidators, reported that the DAO’s issuance of the STG token would pose a security issue.

The Stargate Foundation took action after FTX liquidators voiced their concerns. The Stargate Foundation advised the Decentralized organization (DAO) not to issue Stargate’s native Stargate Finance (STG) token. The liquidators, who made a statement with the chain of events, stated that such a move would violate some services and cause legal problems. Giving an example from the past process, the liquidators pointed to Alameda Research’s purchase of the entire STG auction for $25 million and the hacking of FTX and Alameda wallets in the same year.

With the joint opinion of the FTX liquidators and the Stargate Foundation, it was emphasized to the DAO that the issuance of the STG token “could put security at risk”. In addition, Stargate Foundaiton and FTX liquidators added that the issuance of the STG token could lead to some rule violations and legal issues. In light of the events, Stargate DAO proposed to reissue the STG token to perform transfers from potentially dangerous wallets. But the FTX liquidators rejected this proposal.