​
Background

In July 2022, Nirvana experienced a significant security breach when Shakeeb Ahmed executed a single Solana transaction that maliciously transferred all reserve assets to his private wallet. This unauthorized withdrawal led to the depletion of the protocol’s reserves, causing both ANA and NIRV tokens to become uncollateralized and lose their guaranteed floor value.

By 2024 the US Government had convicted and sentenced Shakeeb Ahmed for computer fraud. During the legal proceedings, authorities seized a portion of his digital assets. The Department of Justice (DOJ) subsequently transferred digital assets valued at approximately $3.45 million to a wallet managed by Nirvana contributors. 100% of the recovered money will be distributed to those affected by the theft.

​
Distribution

The restitution distribution is based on each user’s exposure to Nirvana at the time of the hack. To determine eligibility, a snapshot of the Solana network was taken at slot 143,465,874, roughly five minutes before the hack occurred at slot 143,469,271. Each user’s portfolio equity is calculated by adding the dollar values of ANA, prANA, and NIRV, then subtracting the dollar value of any NIRV debt. The valuation of these tokens is based on their historical prices at the time of the snapshot. It’s important to note that ANA held in escrow (“staked”) and personal wallets are combined to reflect the total ANA held by a user.

A user’s share of the restitution funds is proportional to their personal equity relative to the total equity of all affected users. For example, if a user’s equity represents 0.1% of the total, they would receive $3,450, which is 0.1% of the total recovered funds available for distribution. Eligible users have a 365-day window from the opening of the claims portal to claim their restitution funds. Once a claim is made, the full amount is transferred to the user’s wallet in a single transaction. This process ensures a fair and proportional distribution of the recovered assets to all individuals impacted by the July 2022 hack.

​
Payment & METTA

Restitutions will be paid out entirely in USDC and equal amounts of METTA.

The METTA token entitles the holder to a share of protocol revenue in perpetuity. It is an additional compensation for the damages done by the theft. 10% of all protocol revenue (derived from fees on NIRV & ANA volume) is continuously distributed to METTA holders.

prANA