Ren Protocol urges users to withdraw funds as soon as possible

The project can stop working at any time and block the remaining client assets

20.12.2022 - 07:15

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What’s new? Ren Protocol, owned by trader Alameda Research as part of the bankrupt FTX Group, urged its users to transfer cryptocurrencies to their original blockchains “as soon as possible.” Otherwise, Ren Protocol clients risk losing a total of $15 million due to its shutdown.

1) Reminder that Ren assets need to be bridged back to the respective native chains ASAP ⚠️The Ren 1.0 network is likely to imminently shut down, and any remaining assets are at risk of being lost. https://t.co/OLSMrjj6vb — Ren (@renprotocol) December 17, 2022

Ren Protocol is an open protocol for issuing wrapped tokens and then running them on other blockchains, allowing funds to move between different networks. The most popular coin in Ren Protocol is renBTC or wrapped bitcoin for Ethereum.

What else is known? The protocol’s problems stem from the collapse of the FTX exchange, founded by Sam Bankman-Fried, and all of its affiliates, including Alameda. According to the developers of Ren, in the near future, the protocol can stop working and $15 million of user funds will remain blocked.

No exact timeframe for the blocking is given, however, because the team has no control over the infrastructure. It “could be in the next few days, or a week or two, we don’t know [at the moment] but trying to figure out,” one of the developers of the protocol, Maximilian Roszko, told The Block.

Material on The Block’s website

In late November, decentralized autonomous organization (DAO) Maker decided to liquidate all of its assets in wrapped bitcoins renBTC. The proposal was made as Ren stopped issuing tokens and announced on November 18 that it would shut down after 30 days. At the same time, the team revealed working on the Ren 2.0 project and searching for funding sources.

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