Virtuals Protocol's core contributor, EtherMage, announced a resolution plan with the Basis founding team following a recent security incident. Affected users will receive full compensation without needing to withdraw funds, as the Virtuals treasury will cover the financial shortfall. The team is assisting Basis in implementing security upgrades during the fund return process. The issue arose from a problem with a "buffer" wallet required for interactions with the zyfai treasury, while other Basis and ACP mechanisms remain unaffected.