Announcement of Security Breach Resolution
In a recent announcement on social media, EtherMage, a pivotal member of the Virtuals Protocol team, shared that a resolution has been achieved concerning a security breach involving the Basis platform. Users who were affected by this incident will be fully reimbursed, with the compensation process designed to ensure they won’t need to withdraw any funds. The financial gaps created by this issue will be covered directly by the treasury of Virtuals.
Collaboration for Enhanced Security
As part of the resolution, the Virtuals team is working closely with Basis to enhance security measures while they manage the reimbursement of funds. This security breach was traced back to a malfunction with a ‘buffer’ wallet that plays a crucial role in facilitating interactions with the treasury known as zyfai. It is important to note that other aspects of the Basis platform and the ACP functions are reported to be unharmed.
Impact on BasisOS and Treasury Operations
In earlier reports, BasisOS had disclosed that its AI-driven asset management tool, Agentic FoF, had suffered due to the identified vulnerability, resulting in a significant financial loss estimated at $531,000. Following this incident, all treasury operations have been put on hold temporarily, and users are unable to process withdrawals from Agentic FoF while a thorough internal investigation is conducted.
Despite the pause in operations, the Basis treasury itself remains intact, and certain withdrawal features are still functional as a safety measure against further risks.
