How Indexed Finance Foiled Two Treasury Hijack Attempts – Details
27 November 2023 - 4:16AM
NEWSBTC
In an interesting line of events, Ethereum-based DeFi project
Indexed Finance recently faced and triumphed over a dual hijack
attempt of the protocol DAO’s treasury. Following this development,
the project’s founders will now re-assume control from the DAO. In
a thread on X on Saturday, Laurence Day, a former executive at
Indexed Finance, shared two failed hijack attempts targeted at the
treasury of the project’s DAO, which is currently valued at
$120,000. According to Day, both attackers purchased a high amount
of Indexed’s native token – NDX and attempted to assume control of
the protocol’s treasury via malicious proposals. The first
proposal, identified as Proposal 24, was without a heading or
description. Being virtually unnoticeable, this proposal almost
gained approval within an hour of voting. However, upon
detection, Day, alongside other community members, publicly rallied
others to vote against the proposal and eventually thwarted the
first hijack attempt. Related Reading: HTX Recommence Operations
After Temporary Halt Due to Hack Indexed Finance Anticipates Second
Attack, Emerges Victorious Again Considering the publicity and
attention surrounding the incident, the Indexed DAO suspected
another attacker might attempt to replicate the same tactics to
gain access to its treasury. Therefore, the DAO passed proposal 26,
identified as the poison pill, which granted them the authority to
burn the assets in the treasury if considered as the only means of
halting such an attack. As suspected, another hijacker attempted to
take control of the treasury and even succeeded in getting the
proposal passed – proposal 27. However, proposals on the Indexed
Finance platform have to be queued for 48 hours before execution.
During this time, the hijacker approached the DAO to cancel the
poison pill proposals, and in return, he would take only a 50%
bounty of the funds in the Treasury. However, he soon received
a counter-offer from Indexed Co-founder Dillon Kellar, who offered
him $10,000 DAI in exchange for canceling his proposal 27 or risk
the DAO burning all the assets in the treasury. The hijacker
eventually accepted Kellar’s proposal with 4 hours remaining for
the execution of the poison pill proposal, marking the successful
foiling of the second hijack attempt. Related Reading: Time For
Self-Custody? Crypto Exchange Reveals Hackers Tried To Gain Access
159,000 Times Indexed Finance DAO Hands Over Treasury Control To
Founders Following the multiple hijack attempts, the Indexed
Finance DAO has now ceded treasury control to Laurence Day as well
as Kellar and an individual with the pseudonym PR0. Together, these
three persons will manage the Treasury using a ⅔ multi-sig
system. At the time of writing, NDX trades at $0.00823, with
a 24.15% decline on the last day. In tandem, the token’s daily
trading volume is also down by 44.35% and valued at $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
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024