HectorDAO files for Chapter 15 bankruptcy in the US
The decentralized autonomous organization was first impacted by the collapse of the Terra ecosystem in 2022 and suffered $16.4 million in losses.
HectorDAO, a decentralized autonomous organization, has filed for Chapter 15 bankruptcy in the United States following a series of market collapses and hacks that drained the community of funds.
According to the June 17 filing from Interpath Advisory, a court-appointed firm specializing in bankruptcy stewardship and reorganization, HectorDAO’s current financial condition is mainly due to three factors: the collapse of the Terra network in May 2022, the collapse of the Multichain protocol, and a hack impacting the Hector treasury.
In the filing, Interpath Advisory noted that it was still investigating whether the January 16 hack, which resulted in $2.7 million in funds being drained from HectorDAO, was an inside job committed by former managers of the DAO’s treasury.
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Author: Vince Quill
