An X post by Laurence Day, a former core contributor, described how the Indexed community repelled two attempts to steal the remaining funds from the Indexed DAO’s treasury.
Two attempts at hijacking were successfully foiled by Indexed Finance, an Ethereum-based startup that was hacked in 2021 and lost $16 million. The creators of the project will regain control of the DAO and will distribute the remaining funds to everyone affected by the breach in 2021.
The Indexed community successfully warded off two attempts to steal the remaining funds from the Indexed DAO’s treasury, according to a thread by Laurence Day, a former core contributor on X (previously Twitter). In their schemes to steal the DAO’s over $120,000 worth of digital assets, the two criminals amassed large quantities of the protocol’s NDX token.
Day was prepared for the prospect of a copycat assault since the Indexed team had to publicly organize votes against the idea. Day also explained in his thread how another security hole might put cash outside of the DAO’s treasury at risk if it falls into hostile hands.
Indexed DAO members voted in favor of a “poison pill” proposal that would allow the organization to destroy any remaining treasury money in the event that an assault were to occur.
According to communications posted on the blockchain, the attacker’s first goal during the second assault was to bargain for half of the remaining treasure. Dillon Kellar, creator of Indexed, threatened to burn the whole treasury if the assailant refused to accept $10,000 worth of Dai.
After trying to counter-negotiate for $17,000 with just four hours to go before Kellar’s ultimatum, the attacker accepted the initial offer and withdrew their harmful proposition. The remaining treasury money will be used to recompense victims of the 2021 hack, and Day, Kellar, and the pseudonymous co-founder PR0 will once again manage the DAO using a multisig.
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