Indexed Finance, an Ethereum-based project that faced a devastating $16 million hack in 2021, has emerged victorious in thwarting two recent hijacking attempts, paving the way for the return of control over the project’s decentralized autonomous organization (DAO) to its founders.
Their noble intention is to allocate the remaining treasury to those who fell victim to the 2021 breach.
Former core contributor Laurence Day took to X (formerly Twitter) to provide a comprehensive account of the valiant efforts made by the Indexed community in fending off these two hijacking endeavors, which targeted the DAO’s treasury containing approximately $120,000 worth of digital assets in NDX tokens.
The first hijacker, in a rather clandestine move, submitted a proposal without a title or description in an apparent attempt to evade detection.
However, Day and the vigilant community members rallied the Indexed DAO for votes against this nefarious proposal.
Although the attacker’s proposal came perilously close to approval within an hour, a sufficient number of “No” votes were cast to prevent its passage.
Recognizing the need to stay one step ahead, the Indexed DAO, fearing a potential copycat attack, swiftly approved a “poison pill” proposal.
This measure granted the DAO the authority to burn the remaining treasury funds if deemed necessary as a deterrent against future attackers.
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In the face of the impending second attack, the assailant initially sought to negotiate for a 50% share of the remaining treasury, as revealed in on-chain messages.
Indexed founder Dillon Kellar responded by proposing $10,000 worth of Dai while warning of the possibility of burning the entire treasury if the attacker persisted in their malevolent intentions.
As the clock ticked down with only four hours remaining until Kellar’s ultimatum, and despite an attempt by the attacker to counter-negotiate for $17,000, they ultimately acquiesced to the original offer and withdrew their malicious proposal.
Consequently, authority over the DAO will be reinstated to a multisig controlled by Day, Kellar, and the pseudonymous co-founder PR0.
Their immediate objective is to utilize the remaining treasury funds to compensate the victims of the harrowing 2021 hack.
Indexed Finance’s triumphant defense against these hijacking attempts not only preserves the integrity of the project but also stands as a testament to the resilience and dedication of its community and founders in ensuring justice for those affected by the past breach.
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