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CryptoBridge’s PirateChain Settlement Plan

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Following revelations that cryptocurrency exchange CryptoBridge lost over 1.5 million PirateChain coins (ARRR), over 1% of the circulating supply, caused by an accounting error with the exchange’s gateway proxy token BRIDGE.ARRR (as covered in this recent article), the exchange has made good on its promise to provide a settlement plan.

In brief CryptoBridge inflated their books through their BRIDGE.ARRR token and credited more tokens than they actually had backing for (their ARRR reserve). The bug enabled their users to deplete their reserve through withdraws and sell coins they didn’t have for BTC and withdraw Bitcoin.

Users who lost funds have until September 20th to submit a claim, the details of which were explained in CryptoBridge’s September 6th statement. The exchange’s statement begins:

In our previous update, we revealed that a defect in CryptoBridge’s ARRR gateway allowed a few users to systematically drain our ARRR wallet. An investigation on those thefts was initiated and we will press for criminal charges for the perpetrators. We can finally proceed with the settlement process that we already announced.

The claim process has been criticized by some members of PirateChain’s community due to the fact the exchange plans on settling some of the claims with Bitcoin, and because of the criminal investigation the exchange says it has started claims will have to be accompanied with KYC documents as is detailed in the claim form which users must agree to the terms of:

I also understand that I will receive parts of my settlement in BTC. The exchange rate of ARRR/BTC is determined by https://www.coingecko.com/en/coins/pirate-chain/historical_data/usd using the previous day’s closing rate by the time of settlement payment.

I understand that due to the pending investigation and possible criminal charges in the ARRR case, user verification for my account is required to take part in the ARRR settlement program.

Reports have emerged that the beleaguered exchange has suffered yet another accounting error when some users who had already received their settlements were also able to sell any BRIDGE.ARRR proxy tokens left on their account. CryptoBridge plans to de-list the privacy coin once the settlement period ends.

If you are a CryptoBridge user who has lost funds please make a claim immediately since September 20th is the final date for application.

CryptoBridge has been asked for comment and this article will be updated accordingly.

D. G. Altman
Fascinated by blockchain technology. Privacy advocate since forever with concerns over transparent ledgers in a cashless society. Coding in English (US) and Java at breakfast. Altcoin Maximalist

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