Stargate Foundation has advised its decentralized autonomous organization (DAO) against reissuing Stargate’s native coin (STG). According to the liquidators, taking such action would contravene the automatic stay and might have legal ramifications.
The entire STG auction was bought by Alameda Research, a defunct cryptocurrency trading company, for $25 million in March 2022. Yet that same year, in November, FTX filed for bankruptcy, which led to the theft of about $500 million from FTX and Alameda’s bank accounts. All assets were eventually transferred to new wallets by the liquidators.
Stargate DAO has suggested reissuing the STG token in light of these developments in order to transfer the money from the potentially compromised wallet to a more secure one. The FTX liquidators, however, have voted against this idea.
Reissuing the STG token would not be in contravention of the automatic stay, according to Stargate DAO, who also contends that the liquidators’ worries are unjustified.
Nothing about the foundation’s interactions with the liquidators “indicates that they have a clear understanding of the reality of the smart contracts, how the contracts work, or how they will engage with the contract to secure the cash,” according to a tweet from Stargate.
The foundation continues to advise against reissuing the STG token due to the opinion of FTX liquidators, notwithstanding the efforts of exchanges, protocols, and outside parties to protect the security of money.
