Nexus Mutual Demands $2M Refund from Euler Hack Claimants
• Nexus Mutual, a crypto insurer, has demanded a $2 million refund from Euler Hack claimants who have received their money back.
• The nearly $2.4 million in total claims that Nexus Mutual has paid remains unreturned by 5 clients.
• The situation highlights the reliance on trust despite proponents of crypto insisting that clever code could replace traditional financial systems.
Euler Finance Hack Results in Refund Demand from Nexus Mutual
Nexus Mutual, one of the largest insurance platforms covering high-risk decentralized finance (DeFi) deposits, is demanding a refund of nearly $2 million from five policyholders who filed claims after the Euler Finance hack last month. The hacker returned most of the money and those five claimants received their funds, but they are now being asked to pay back what they received to Nexus Mutual since there was no actual loss suffered.
Claimants Agreed to Return Funds if Necessary
These policyholders had agreed to return any money they were reimbursed if they received funds from Euler’s redemptions portal. At press time, 457 users had been returned $133 million in value by Euler, six of whom were also Nexus Mutual policyholders. Of these six, four have returned about $380,000 in various cryptocurrencies to the group while two have not returned anything yet and appear to be spending it elsewhere. This amounts to almost $400,000 still owed by them combined.
Risk of Legal Action
Leaders of Nexus Mutual have stated that its governing body may pursue legal action if these claimants do not pay back what they owe as soon as possible. This situation brings attention to an ongoing issue with DeFi projects: despite cryptos attempting to supplant trust with crafty code, some parts still rely heavily on trust when it comes to financial transactions within the system.
Redemptions Portal Returns Funds
As mentioned before, Euler’s redemptions portal has been instrumental in returning funds back to its users after suffering a major hack worth around $200 million last month. In addition to those refunds being sent out directly by Euler itself, those same people can receive additional reimbursements through insurance policies like those provided by Nexus Mutual if needed or wanted.
Conclusion
It appears this scenario is playing out right now with regards to Nexus Mutual and its five claim holders who are refusing or unable for whatever reason – both valid and otherwise -to pay back their respective share of the refund owed by them collectively amounting close to $400K in all cryptocurrencies combined . Whether or not lawyers get involved remains unknown at this time but one thing is certain: DeFi projects must continue striving towards developing clever code that replaces traditional reliance on trust for performing secure financial transactions inside its system .