Neutrl Pauses Contracts Over Position Issues, Plans Redemption in September

ChainCatcher report: The Neutrl team has identified issues with positions held in the strategy, affecting part of the protocol’s reserve liquidity. In the best interest of users and after consulting legal counsel, the relevant smart contracts have been promptly paused. This incident was not caused by a smart contract vulnerability, hack, or code defect. The protocol currently holds approximately $27 million in available liquid assets and continues to hold other positions within the strategy along with their associated gains and losses, which cannot be liquidated at this time. The team cannot confirm the timing, amount, or recovery value of these positions. Closing out and recovering the remaining positions will take considerable time, and the amount or timeline for recovery cannot be determined at this stage. In response to user liquidity demands, Neutrl will enable an early redemption mechanism for NUSD and sNUSD holders, ensuring fair treatment for all holders as advised by legal counsel. Full details will be disclosed prior to the commencement of redemptions, with a target date in early September, subject to the deployment of new redemption contracts, independent audits, and legal and financial reviews—timing may change. The team advises against trading NUSD or sNUSD at this time.