HectorDAO, a decentralized autonomous organization, has filed for Chapter 15 bankruptcy in the United States due to market collapses and hacks. The financial troubles stem from the collapse of the Terra network, Multichain protocol, and a hack on the Hector treasury. Following a $2.7 million exploit, members accused former managers of involvement. Despite losses, the community operated until a decision was made to liquidate assets. The majority voted for liquidation, leading to the establishment of a committee for asset distribution. However, another exploit occurred, prompting accusations of negligence. The community demanded a neutral party, Interpath Advisory, to oversee remaining funds. Chapter 15 bankruptcy allows foreign entities to file in the U.S. for proceedings. It does not restructure debt but provides a platform for resolution. This situation highlights the risks in the crypto world, as seen in the article 'Deposit risk: What do crypto exchanges really do with your money?' Read more AI-generated news on: https://app.chaingpt.org/news