Indexed Finance, an Ethereum-based platform, successfully prevented two attempts to seize the remaining funds of the Indexed DAO after a hack attack in 2021 that resulted in the theft of $16 million worth of crypto assets. Laurence Day, the former manager of Indexed, explained how the community thwarted the two attempts to seize the funds.
In the hack attack, large amounts of purchases were made using the platform’s native token, NDX, and the attackers attempted to seize approximately $120,000 worth of crypto assets still controlled by the DAO through malicious proposals.
The first proposal was an attempt against the DAO without any headline or explanation to go unnoticed. Day and other participants tried to vote against it in the Indexed DAO community, but they were unsuccessful. The malicious proposal was expected to be accepted within an hour without sufficient “no” votes.
Following these developments, the Indexed team had to criticize the votes cast against the proposal in public. Day mentioned that he suspected another mimic attack would occur. Additionally, as Day stated in his own post, a security breach outside of the DAO’s treasury could pose a risk for other funds if malicious actors take control of the DAO.
According to messages on the chain, Dillon Kellar, the founder of Indexed, initially attempted to make a 50% market offer from the targeted treasury to the attacker. Kellar responded by offering $10,000 in DAI stablecoin and threatening to burn the entire treasury if the attacker did not accept this offer.
After attempting negotiations for four hours and offering $17,000, the attacker accepted the initial proposal and withdrew the malicious offer. The control of the DAO will now be transferred to Day, Kellar, and PR0, who plan to repay the remaining treasury funds to the victims of the 2021 hack attack.