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Shata Fund faces $5.1 million loss due to failed EFVault upgrade

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According to reports, PeckShield monitoring data shows that it seems that the EFVault of Shata Fund was upgraded and failed four days ago, resulting in a loss …

Shata Fund faces $5.1 million loss due to failed EFVault upgrade

According to reports, PeckShield monitoring data shows that it seems that the EFVault of Shata Fund was upgraded and failed four days ago, resulting in a loss of about $5.1 million. Shata Capital is a VC invested in Crypto Native.

Shata Fund encountered an upgrade failure, resulting in a loss of about US $5.1 million

Interpretation of the news:


PeckShield, a blockchain security company, reported that the EFVault of Shata Fund was upgraded but failed four days ago, leading to a loss of approximately $5.1 million. The incident was of great concern to stakeholders, given that Shata Capital is a venture establishment invested in Crypto Native startups that aims to change the landscape of traditional industries through blockchain adoption.

The EFVault is a digital wallet operated on the Ethereum blockchain network, which is mainly designed to store Ether and various tokens built on the platform. As a custodian separate from the fund’s other bank accounts, it secures the digital assets owned by Shata Fund, which offers crypto-asset management, consulting, and investment to private and institutional clients. Hence the failure of the wallet and the subsequent loss was a significant setback for the firm.

However, the reason for the EFVault’s failure is not yet clear, and this may be attributed to an error in the upgrade process. In the blockchain space, an upgrade process refers to making changes to the existing software of a blockchain network to enhance its features or patch known bugs. At times, some of these upgrades may encounter unforeseen issues, leading to network downtime or, in rare cases, wallet losses.

It is unclear whether Shata Fund has adequate insurance coverage for the loss, considering that blockchain is a relatively new industry and the regulatory environment is continually developing. However, this event highlights that blockchain is not immune to technology and security risks, such as bugs, hacks or software malfunctions, which can lead to significant losses.

In conclusion, it is essential to note that blockchain technology is in its early stages, and there are still many uncertainties and risks associated with it. In view of the above, investors and firms should be prepared to invest in appropriate risk mitigation strategies and take proactive measures to protect their assets. It is crucial to research and thoroughly analyze blockchain initiatives and firms that they plan to invest in to ensure that the risk of loss is minimized.

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