The Indexed Finance treasury experienced a recent attack initiated by a hacker allegedly associated with North Korea.
Key Takeaways
- On-chain investigator ZachXBT suggests a potential North Korean cybercriminal’s involvement in an attack on Indexed Finance’s treasury.
- The attack targeted the remains of Indexed Finance, a defunct decentralized protocol for passive portfolio management on Ethereum (ETH).
- The hacker initiated a proposal to gain control of the protocol’s treasury, containing $36,000 in DAI and nearly $48,000 in NDX tokens.
- Indexed Finance community members responded by voting against the hostile proposal, successfully thwarting the attack.
A cybercriminal, suspected to have ties to North Korea, initiated a hostile proposal on Nov. 18, targeting the treasury of Indexed Finance, a decentralized protocol for portfolio management on Ethereum.
Hacker’s Attempt to Seize Control
The attacker aimed to take control of Indexed Finance’s treasury, which held significant amounts of DAI and NDX tokens. Indexed Finance team member Laurence Day raised an alarm about the proposal.
North Korean ties suspected in Indexed Finance treasury attack https://t.co/LcDLyrRj9v #News #DeFi #hack #NorthKorea
— OutbackDeFi (@BushOrangutan) November 20, 2023
Community members holding NDX tokens rallied against the governance attack, voting overwhelmingly against the hostile proposal. This collective action successfully defended the treasury.
NDX Token Price Takes a Hit
Despite the successful defense, the news of the attack led to a 14% drop in the NDX token price, which plummeted to $0.01, as reported by CoinGecko.
On-chain investigator ZachXBT noted the hacker’s alleged ties to North Korea, citing funding from an individual named Alex Chon, an alleged North Korean IT worker. The hacker also attempted an attack on the Relevant platform.
Indexed Finance’s History of Attacks
Indexed Finance previously suffered a $16 million flash loan attack in 2021, leading to legal actions against the perpetrator. However, authorities struggled to locate and apprehend the suspect.
To Conclude
The suspected involvement of a North Korean cybercriminal in the attack on Indexed Finance’s treasury highlights the increasing sophistication and international reach of cryptocurrency-related threats.
The community’s swift response and successful defense demonstrate the resilience of decentralized networks against such attacks.
