We're happy to announce that ~90% of the funds from the May 12th security incident have been recovered. The attacker decided to return the funds that were sitting across Ethereum, TON, TAC, BSC and Zcash, and retained the 10% as a bounty. We are happy to confirm that the unbalance on the cross-chain layer will be completely fixed. A detailed update and full post-mortem will follow in the coming days. Big thanks to @SEAL_911, our security partners, the @ton_blockchain community and to every partner team that stood with us.

Following the security incident, we identified an exploit on the TON side of the TAC crosschain layer that was carried out by an external attacker. The incident resulted in a loss of approximately $2.8M across USDT, BLUM, and tsTON. The TAC token, TON and all ERC-20 tokens bridged from Ethereum are NOT affected. The bridge remains paused while forensic analysis and remediation work are ongoing. A post-mortem with additional disclosure will be published in the next 48 hours. We are actively working with law enforcement, SEAL 911, and our security partners to trace and block the stolen funds. Our focus is on making users whole and fully restoring bridge liquidity through a legally structured sale of Foundation’s TAC token treasury reserves. We will continue to share updates through our official channels. Thank you for your patience and trust.