PLX Token Security Incident update and Bitget User Compensation Plan

After a security incident involving the PLEXUS project, which led to an abnormal issuance of PLX tokens, Bitget has been actively communicating with the project team to reach a consensus that protects the interests of Bitget users and the PLEXUS community. Since the project team is unable to agree to our proposal of a 100% refund for affected users, we want to be fully transparent with our users, disclose the details of the incident, and launch a Bitget User Compensation Plan.

On June 1, 2024, at approximately 3:47 PM (UTC), the smart contract address of the PLEXUS project was hacked, resulting in the issuance of around 200 times more PLX tokens. The attacker deposited some of these tokens into Bitget and sold them, causing a significant drop in the token price, and then withdrew the profits in USDT. Following the incident, Bitget suspended the PLX/USDT trading pair at around 12:00 AM (UTC) on June 2 and tried to communicate with the project team on a solution.

The PLEXUS project team proposed an upgrade of the smart contract, replacing the old PLX tokens with new tokens on a 1:1 basis. However, the snapshot time for the smart contract was set before the hack, meaning users who bought PLX tokens after the attack would likely not receive new tokens, thus incurring losses. Bitget suggested compensating the affected users, but the PLEXUS team initially claimed they could not bear the cost and later stated they could only cover 50% of the losses in PLX tokens.

Given the PLEXUS project's inability to present an adequate solution that protects the interests of the community and users, Bitget, adhering to the principle of "Users First", will launch a User Compensation Plan to cover 100% of the losses for affected Bitget users. Users who meet the following criteria should contact the Bitget support team with relevant information to apply for compensation:

1.    Compensation eligibility: Users who bought PLX tokens on Bitget from 3:47 PM on June 1 to 12:00 AM on June 2, 2024 (UTC), and still hold the tokens on the platform.

2.    Compensation calculation: Based on the amount spent at the time of purchase, compensated in USDT.

3.    Distribution method: After verifying the data, the compensation amount will be credited to your Bitget account within 14 business days.

Regarding the potential contract upgrade and token swap by the PLEXUS project team, Bitget will actively maintain communications with the project team and support a 1:1 swap of old to new tokens to ensure that PLX holders on Bitget can receive the new token airdrops. Additionally, considering the project's ongoing operational capabilities, Bitget will delist the PLX/USDT trading pair on August 7, 2024. The withdrawal service for PLX tokens will remain available until September 7, 2024, so please manage your assets accordingly.

Thank you for your support and understanding.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users are strongly advised to do their research as they invest at their own risk. Thank you for supporting Bitget!

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