Crypto developer platform Gitcoin admitted that it lost tokens after accidentally transferring $460,000 of Gitcoin (GTC) to a contract address that could not be recovered.
Jonathan, Gitcoin’s project lead, said the issue resulted in nearly half a million dollars’ worth of funds being locked into a one-way contract address. Project leader Coach Jonathan shared details of the incident on the Gitcoin governance forum on October 6. He described the transfer of GTC from the treasury in many different ways. But instead of going to the multi-signature address, they went to the GTC Token contract.
A statement was made from the company regarding the events
A total of 521,440 GTC Tokens were lost. GTC Token was trading just under $0.90 at the time, making the loss an estimated $461,000.
Following the transfer, Gitcoin core developers were contacted to investigate whether the contract had withdrawal functionality or was upgradeable. It was confirmed that neither was an option, so the funds were marked as lost.
In light of the incident, the team shared plans to ensure such a mistake never happens again and to provide clearer accountability should another incident occur. Jonathan gave his views on the incident as follows:
“This resulted in the funds being trapped in the contract and having no way of getting them back. Large token holders and multi-signature signatories have a responsibility (myself included) to be extra diligent in managing funds that do not belong to them.”
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