Galxe will refund users 110% of their losses in a recent hack, as announced on October 10th. The company stated, “We want to express our deepest gratitude to those who stood by us during this difficult time.”
User funds will automatically be returned on October 16th to the wallet address that was compromised unless users request an alternative method. Affected users will be compensated in Tether, with the value calculated at 5:00 PM on October 9th.
Galxe stated in a letter to users that those who verified transactions on a fraudulent website on October 6th were affected. The hack lasted just over an hour.
In a preliminary estimate on October 10th, over $396,000 in damages had been recorded. The company had previously estimated that around 1,120 users were affected by the hack.
Charles Wayn, co-founder of the platform, stated in a text response that Galxe is working with two cybersecurity firms to trace the stolen funds. Additionally, they have enhanced the security settings of the domain service, changed the domain provider, and are conducting security audits. Wayn said, “The incident mainly occurred because the domain registrar Dynadot reset our account information and granted access to the impostor who provided fake self-attested documents claiming to be an authorized Galxe member.”
Galxe is an unlicensed, self-sovereign identity infrastructure. The original GAL token had dropped from $1.20 to $1.15 on Friday, October 6th. It reached $1.21 over the weekend with high trading volume until Saturday morning and is currently holding steady at $1.16.