Indexed Finance (a DeFi protocol) has issued an update about the hack being experienced during the recent week where the hacker stole $16M in several tokens. Indexed Finance’ lead developer, Dillon Kellar, shared a tweet stating that the intruder has denied recompensing the looted funds, compelling the crew to hand over the matter to the agencies of law enforcement. He stated that notwithstanding the white anti-Semitism and supremacy, along with giving a convenient escape to prevent his life from being ruined, the hacker has selected to hold onto the plundered funds. The intruder has seemingly been identified by Indexed Finance, and the organization has provided him various chances to give the funds back after keeping a 10% bounty to be a donation.
However, the hacker lets the organization contact the legal agencies if it becomes the need of the hour. A comprehensive analysis has been provided by Indexed finance regarding the hacker’s identity, who had communicated with the team some weeks before to discuss the progress of the arbitrage bot. As per the likely identity, the hacker is a student of masters in mathematics and removed the chat logs, which highlight that the information gathered by Indexed Finance about the identification of the intruder was correct.
The hack
The intruder manipulated two of the protocol’s index pools by taking benefit out of the readjustment mechanism to have the permission of minting more DEFI5 with an exaggerated valuation. This resulted in the plunder of various assets. Currently, the compensation of the victimized clients along with the vulnerability of the addresses is being sorted out by Indexed Finance.
DeFi protocols being consistently aimed by hackers
DeFi (Decentralized Finance) protocols have been confirmed to be a sword having two edges. The attractiveness and novelty of this market have made it an easy target for sophisticated attacks. Such protocols appeal to numerous new investors who become the chief targets of hackers. Therefore, comprehensive attention is being focused on making the protocols secure in advance of their issuance, along with highlighting that those protocols are prone to be attacked.
Another solution being proposed was the insurance protocols that prevent damages likely to occur in such attacks. DeFi is presently considered the latest wild west within crypto space as well as insurance projects in it are expecting that some stability and regulation is to be brought about by them in the field of cryptocurrency.