Alby Wallet Users Face 16% Loss in Fund Retrieval

SlowMist founder Yu Xian has provided an update on the incident involving the transfer of funds from the Alby custodial wallet. According to Yu Xian, the process of retrieving the funds was complex and resulted in significant losses. Despite the platform returning the funds, the process was cumbersome, and only a portion of the original amount was successfully withdrawn.

Yu Xian mentioned that out of the $191 that was initially transferred, only $153 was successfully retrieved, with over $30 lost in the process. This highlights the challenges and potential risks associated with using custodial wallets for fund transfers.

Earlier in the day, it was reported that Yu Xian had managed to retrieve the funds without following the official steps. It appears that the platform directly refunded the amount, leading to a positive resolution for Yu Xian. However, for others who have encountered similar issues, Yu Xian advised sending an email to the official support, which is listed in the transaction details of the transferred amount.

Following the official response, users may need to register for the platform's Cloud service or set up an Alby Hub, which could involve additional fees. Alternatively, users might choose to wait for a direct refund, as Yu Xian did. This approach, however, may not guarantee a successful retrieval of funds.

The incident underscores the importance of understanding the mechanisms behind custodial wallets and the potential challenges that users may face when attempting to retrieve their funds. It also highlights the need for clear communication and support from the platform to ensure a smooth and efficient process for users.