Indexed Finance, the Ethereum-based project that was hacked for $16 million in 2021, has fended off two hijacking attempts and is returning control of its DAO to its founders, who plan to redistribute the treasury to victims of the 2021 hack.
in line Laurence Day, a former core contributor at Each attacker purchased large quantities of the protocol’s NDX tokens and attempted to steal those tokens. Approximately 1.2 million won The value of digital assets that DAOs still control through malicious proposals.
The first proposal, without title or description in an apparent attempt to evade detection, is as follows: be defeated After Day and others rallied the Indexed DAO community to vote against it. The attacker’s proposal was presented within an hour of passage, and there were enough ‘no’ votes to defeat it.
But since the Indexed team had to publicly vote against the proposal, Day suspected that a copycat attack was possible. Moreover, as Day explained in his thread: Additional Vulnerabilities If the DAO falls into hostile hands, this could put funds at risk outside the DAO treasury.
To reduce the risk of a second attack, Indexed DAO passed a ‘poison pill’ proposal that would allow burning remaining treasury funds if necessary to dissuade attackers.
When the second attack went as expected, the attackers initially reportedly attempted to negotiate for 50% of the remaining treasury. On-chain message. Indexed founder Dillon Kellar offered $10,000 in DAI stablecoin and threatened to burn the attacker’s entire treasury if he did not accept.
With four hours left until Kellar’s ultimatum, the attacker attempted to counter-negotiate for $17,000 before accepting the original offer and canceling the malicious offer. Control of the DAO now reverts to multisig, controlled by Day, Kellar, and pseudonymous co-founder PR0. PR0 plans to repay hacking victims in 2021 with remaining treasury funds.
“We’ll deal with the administrative hassles later, but the Indexed saga is over.” Day Posted.
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