Indexed Finance Successfully Thwarted Two Fund Theft Efforts

Indexed Finance, managed to ward off two attempts to steal. (photo; x @ndxfi)

JAKARTA - Ethereum-based project, Indexed Finance, which was previously a victim of a $16 million hack in 2021, managed to ward off two attempted thefts. Control from the project's decentralized autonomous organization (DAO) will be returned to the founders, aiming to allocate the rest of the cash to victims of the 2021 hack.

In an upload on X (formerly Twitter),ruis Day, a former core contributor, explained the efforts of the Indexed community in overcoming two attempts to hack into the remaining cash from the Indexed DAO. The two attackers managed to obtain a large number of protocol NDX tokens and attempted to take over the digital assets of around US$120,000 (Rp1.8 billion) through malicious proposals.

The first proposal, without a title or description apparently to circumvent detection, was prevented as Day and other community members moved the Indexed DAO to vote against it. The attacker's proposal was almost approved within an hour, but quite a lot of "No" votes were given to prevent his approval.

However, as the Indexed team had to openly coordinate its votes against proposals, Day estimated a possibleimagious attack. In addition, as Day explains in its posts, its further vulnerability could endanger funds outside DAO's cash if it falls into unfriendly control.

To mitigate the threat of further attacks, Indexed DAO approved a "toxin pill" proposal that authorized him to burn remaining cash funds if needed to scare potential attackers.

Along with the second anticipated attack, the attacker initially tried to negotiate to get 50% of the remaining cash, as revealed in the on-chain message. Indexed founder▁Perintah Kellar responded by offering $ 10,000 worth of Dai and warned he would burn the entire cash if the attacker refused.

With only four hours remaining until Kellar's ultimatum, and after an attempt to renegotiate $17,000, the attacker accepts the initial offer and withdraws his malicious proposal. Authorities over DAO will return to multisig controlled by Day, Kellar, and co-founders with a PR0 pseudonym, with plans to compensate victims of the 2021 hack using remaining cash funds.