In an interesting turn of events, Ethereum-based DeFi project Indexed Finance recently faced a double hijacking attempt on its treasury from the protocol DAO and won. Following this development, the project founders will now regain control from the DAO.
In Saturday’s
According to Day, both attackers purchased large quantities of Indexed’s native token, NDX, and attempted to take control of the protocol’s assets through malicious offers. The first proposal, identified as Proposition 24, had no title or description. The virtually unremarkable proposal almost won approval within an hour of the vote.
great. Here’s what just happened to Indexed DAO:
The wreckage can be seen in the tally panel below.
This is a long post, but I want to record it somewhere. pic.twitter.com/wRTRZZcwhm
— Lawrence, Paradigm Support (@functi0nZer0) November 25, 2023
However, upon detection, Day, along with other community members, publicly rallied others to vote against the proposal, ultimately thwarting the first hijacking attempt.
Related reading: HTX operations resume after suspension due to hacking
Indexed Finance anticipated the second attack and emerged victorious again.
Given the publicity and interest surrounding the incident, Indexed DAO suspected that another attacker may be attempting to replicate the same tactics to gain access to the Treasury.
Therefore, the DAO passed Proposal 26, identified as a poison pill that would authorize the Treasury to burn its assets if deemed the only means to stop such attacks.
As suspected, another kidnapper attempted to take control of the Treasury Department and succeeded in passing Proposition 27. However, offers on the Indexed Finance platform must sit in the queue for 48 hours before being implemented.
During this time, the kidnapper approached the DAO to cancel the poison pill offer and in return he would take only 50% of the funds in the treasury as a bounty. However, he soon received a counteroffer from Indexed co-founder Dillon Kellar, offering $10,000 DAI in exchange for canceling Proposition 27 or risking the DAO burning all of its Treasury assets.
The kidnapper ultimately accepted Kellar’s offer with four hours remaining until the poisonous offer was carried out, successfully thwarting a second kidnapping attempt.
Indexed Finance DAO transfers financial control to founders
After multiple kidnapping attempts, the Indexed Finance DAO has now ceded control of its finances to Laurence Day and individuals with the pseudonyms Kellar and PR0. Together, these three will manage the treasury using a ⅔ multi-signature system.
As of this writing, NDX is trading at $0.00823 and is down 24.15% in the last day. Along with this, the daily trading volume of the token also decreased by 44.35% and its value is $2,347.
Total crypto market valued at $1.398 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from Hacked.com, chart from Tradingview