- Once the 14-day cooling-off period ended on July 29, users of Arcadia who had lost money began submitting claims.
- The reimbursement will not affect Nexus Mutual’s liquidity or its capacity to pay additional claims, according to Phil Johnston.
Customers who had their funds stolen in the recent Arcadia Finance theft were reimbursed by Crypto-native insurance alternative Nexus Mutual.
An notification made public on Monday said that Nexus Mutual has paid out around $250,000 to customers who had their money stolen in the Arcadia Finance attack. A theft occurred in mid-July on the Base blockchain, stealing $3.5 million worth of stablecoins. The stolen assets were then exchanged for Wrapped Ether (WETH).
$250K Reimbursed via OpenCover
Victims had their money stolen straight from their accounts. Once the 14-day cooling-off period ended on July 29, users of Arcadia who had lost money began submitting claims. So far, Nexus Mutual has reimbursed $250,000 via its relationship with OpenCover, a supplier of base-based coverage. “Zero risk does not exist offchain, nor will it exist onchain,” said OpenCover CEO Jeremiah Smith.
The reimbursement will not affect Nexus Mutual’s liquidity or its capacity to pay additional claims, according to Phil Johnston, director of marketing at the company. An active cover with over $100 million remains, he assured. Nexus Mutual allows its verification onchain and keeps its claims history accessible. Users have allegedly received claims payments totaling $18,256,181 since the service began in 2020.
Nexus Mutual claims that most legitimate claims are paid out within seven days, in contrast to conventional insurers that typically take months to settle claims, all because blockchain data is transparent and verifiable. Although custodial intermediary concerns are no longer an issue with DeFi, new vulnerabilities like as complicated smart contracts with large attack surfaces are introduced.
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