KuCoin has made the decision to disqualify and delist the token aUSD from Acala Network. This action comes after Acala Network experienced a misconfiguration that resulted in the erroneous minting of aUSD in 2022.
In response to the incident, KuCoin has taken steps to compensate token holders for their losses. They have initiated an “acquirement plan” to address the situation. Back in August 2022, Acala encountered a problem where 3 billion aUSD tokens were mistakenly minted in its liquidity pool. As a result, KuCoin suspended deposits and withdrawals of aUSD and labeled the asset as “Special treatment” while investigating the error mints.
In September 2022, Acala Project published a detailed trace report, but a solution from the Acala Project Team seemed unlikely even after two years. Therefore, KuCoin has decided to launch the acquirement plan for users holding aUSD.
KuCoin has explained the compensation process in an official blog post. They have stated that aUSD holders need to apply for the acquirement plan between now and June 23. Once the application is submitted, eligible aUSD holders’ tokens will be converted to USDT. The converted USDT will be deposited into users’ accounts within 15 working days, as mentioned in the article.
It is important to note that only those users who have completed and submitted the application forms for acquirement will be eligible for the conversion. The application forms will remain open until June 23. The price for acquirement will be based on the average price 30 days before the closure of the trading pair aUSD/USDT.
In the midst of this incident, the native token of Acala Network, ACA, experienced a 1.91% drop in value and is currently trading at $0.1021, according to CoinMarketCap data.
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