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- KuCoin ‘disqualified’ and delisted Acala Network’s token, aUSD.
- Acala Network witnessed a misconfiguration which led to error minting of aUSD in 2022.
Crypto exchange Kucoin delisted the dormant stablecoin of Acala Network — aUSD — and has initiated the launch of an “acquirement plan” to compensate token holders’ loss.
Previously, in August 2022, the Acala incident — an erroneous minting of 3 billion aUSD tokens in its liquidity pool — occurred. Following it, KuCoin ceased deposits and withdrawals of aUSD. Then, it isolated the asset into the ‘Special treatment’ category and initiated an investigation into the error mints.
Furthermore, in September 2022 Acala Project published a full trace report. Despite being two years, since a possible solution by the Acala Project Team seemed unlikely, KuCoin has launched this acquirement plan for users holding aUSD.
In the official blog post, KuCoin stated:
“Unfortunately, despite several rounds of communications with the Project Team, up until now, a reasonable solution still couldn’t be reached due to lack of cooperation from the Project Team.”
However, Polkadot-native DeFi protocol Acala Network has not yet commented on the launch of KuCoin’s acquirement plan.
How Does KuCoin Compensate Holders’ Loss?
KuCoin’s solution for aUSD holders is that they need to apply for acquirement plans starting today until June 23. The exchange then plans to convert eligible aUSD holders’ tokens to USDT. The converted USDT will be deposited in users’ accounts within 15 working days, as stated in the article.
Additionally, the conversion will occur only for those users who have completed and submitted the application forms for acquirement. Application forms will be kept open until June 23. The price for acquirement was stated to be the average price 30 days before the closure of the trading pair aUSD/USDT.
Amid this incident, Acala Network’s native token ACA dropped by 1.91% to trade at $0.1021, as per CoinMarketCap data.