SpiritSwap, the decentralized exchange (DEX) on Fantom, will no longer close its doors in September as treasury funds are trapped on troubled cross-chain protocol Multichain.
In a community vote on Aug. 16, SpiritSwap users passed a resolution to transfer the project to Power, a non-fungible token platform and DEX also based on Fantom. As a consideration, Power will deploy 200,000 USD Coin (USDC) to the SpiritSwap vault.
“Initially, I asked for a deposit of 20-30K to the Treasury to cover SpiritSwap’s basic fees. However, the Power team is willing to deposit 200,000 USDC,” wrote Nzaru, the lead manager of SpiritSwap, who announced after receiving a new job offer Will leave DEX. “On the 30th, I will finalize the new team and hold an induction meeting to prepare for the next month,” he said.
Prior to the acquisition, Power developers stated: “We have the ability and desire to have SpiritSwap inherent. This will bring direct benefits to PNFT holders, the POWER community, and the SpiritSwap community.”
On Aug. 9, SpiritSwap said it would cease operations by Sept. 1 if it couldn’t find a team to take over after the multi-chain bug drained all of its funds. Interestingly, Power was also affected by the multichain fiasco, but only suffered “small” losses because its financial assets were not bridged to the multichain.
After months of speculation, Multichain’s developers revealed in July that co-founder and CEO Zhanojung He had been arrested by Chinese police in May on undisclosed charges. He allegedly had $1.5 billion worth of multi-chain private keys and all access to the server at the time of his detention. Despite the lack of information about his detention, funds belonging to Multichain and its users have been exchanged for stablecoins and private coins and transferred out of the protocol. Some victims have since claimed that the Chinese police were involved in an elaborate scheme to embezzle users’ funds.
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