An update on our markets following last weeks incident:

If you're not up to speed on what happened, here is the post mortem from @ionicmoney : https://t.co/ij28mPtYaW

Following the exploit, the hacker used borrowed mBTC from Ionic and used it to take out loans on Ironclad. Our markets remained solvent but illiquid, trapping our LPs until the hackers position could be closed.

At that point, we were working on a way to liquidate the hacker's position and free up the markets so our LPs could unwind. Unfortunately, the hacker was able to push more txs through on the network, which lead a decision by those leading the investigation to burn much of the mBTC off the network, including the mBTC collateral on Ironclad.

Once we can work out a solution with the relevant parties to restore the mBTC that was burnt, we will be able to reopen our markets and allow our LPs to unwind/adjust their positions.

We have not had any funds stolen, there is simply a debt position that must be closed.

Thank you all for your patience, we are hoping to have perfect clarity and a clear path forward this week.