Wu said that Degen tweeted that Conduit had seized the Degen L3 rollup private key for several months, and Degen might need to restart or fork a new chain. Degen said that Conduit had pushed an incorrect upgrade without notification, resulting in 54 hours of downtime and $160,000 in user funds lost, but Conduit later refused to take responsibility, rejected the request to upgrade the chain, withheld the sorter fee, and required a new contract to be signed to exempt from liability.