tBTC, an ethereum-based token backed 1:1 by Bitcoin, has frozen deposits just one week after its official launch.
The head of the project, Matt Luongo, has said via Twitter that tBTC has decided to freeze deposits for the next 10 days and that the team is helping users withdraw their funds.
While the reason behind this decision is still unknown, Luongo has promised to release a full post-mortem report later today.
Apparently, Thesis, the company behind the project, has reported the problem is related to a bug:
"While the tBTC dApp was being tested over the weekend in its alpha version, a couple of community members put a few BTC into the contract before testing had concluded. Meanwhile, an issue in the dApp that was missed by our security audit was found by two of our contributors, and we decided to pause deposits for now to ensure the safety of funds. It is thanks to the strength and engagement of our community that this was identified quickly and all funds are safe."
tBTC, which was officially launched on May 11, allowed users to deposit limited funds in Bitcoin to mint the tBTC token, which is based on the ERC-20 standard and is fully collateralized by bitcoin.
Luongo has reported all efforts are focused on further improving the security of the system before announcing a date for its re-launch. A new audit is being conducted by Trail of Bits; the company also plans to hire another auditor and the reward for finding bugs has been increased tenfold.
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