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Gitcoin loses $460,000 in GTC tokens after sending funds to unrecoverable contract address
Crypto developer platform Gitcoin has admitted to losing approximately $460,000 in Gitcoin (GTC) tokens after mistakenly sending the funds to an unrecoverable contract address.
On Oct. 6, project lead “CoachJonathan” posted details of the incident on the Gitcoin governance forum. He stated that the transfer of GTC from the treasury was intended for a proposal covering merchandise, memes, and marketing budgets.
However, instead of being sent to a multisignature address, the funds were sent directly to the GTC token contract.
“This has rendered the funds stuck in the contract, with no way of recovering them,” he lamented.
A total of 521,440 GTC tokens were lost in the error. With the coin trading at just below $0.90 at the time, the dollar loss was estimated at $461,000.
Following the transfer, Gitcoin core developers were contacted to determine whether the contract had a withdraw function or was upgradeable. It was confirmed that neither option was available, so the funds have been flagged as lost.
In light of the incident, the team has shared plans to ensure such an error never happens again and to establish clearer accountability if another incident occurs.
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“Large token holders and multisig signers have a responsibility to be extra diligent when it comes to handling funds that do not belong to them (myself included),” he concluded.
Gitcoin researcher Umar Khan commented on the forum that the DAO could consider the lost tokens a reduction in GTC supply rather than a loss of treasury funds.
Observers noted that “Crypto UX is sadly really broken if this can happen.”
It seems that @gitcoin mistakenly sent ~521k $GTC (~$471k) to the token address instead of funding a workstream address
That is really sad to see. Effectively burning half a million $
How come none of the voter/signer noticed? Crypto UX is sadly really broken if this can happen pic.twitter.com/DhI7lPaViY— Lefteris Karapetsas | Hiring for @rotkiapp (@LefterisJP) October 7, 2023
Related: Crypto.com accidentally transferred $10.5M to client instead of $100 refund
Gitcoin is a platform designed to fund Web3 builders seeking open-source work. Project owners and developers can publish their projects, while donors can browse a list of projects and choose which ones to fund.
The price of GTC has fallen 1.1% over the past 24 hours and was trading at $0.889 at the time of writing. Moreover, the token is down a significant 99% since its all-time high of $89.62 in May 2021, according to CoinGecko.
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