DeFi protocol Indexed finance was the latest one to be hit with a hack attack but the team reportedly found the hackers who stole $16 million off their platform so let’s read more in our latest crypto news today.
DeFi protocol Indexed Finance was hacked for $16 million and those working on the project said they have found the hacker. The hacker stole $16 million from the decentralized finance project indexed Finance but now the team said they located the attacker. Indexed Finance is a DeFi project built on Ethereum and it produces tokens that track the market indexes. The hacker took the assets that were backing the value of the index tokens by finding a vulnerability in the smart contract protocol. The attack was typical for Defi exploits as the hacker took advantage of the flash loan mechanism by overloading the protocol with new assets. This lowered the price of the tokens indexed and allowed the attacker to mint new ones.
The 10% offer has expired. The attacker has until EOD to return 100% of the stolen funds or his information will be published and law enforcement notified.https://t.co/am2XnwL5fD
— Indexed Finance (@ndxfi) October 16, 2021
Now, two out of six assets in the protocol lost most of their value. DEFI5 crashed by 85% an hour before the attack and CC10 lost 98% of the value before the hack it was trading for $62.50 but then it dropped to $0.74. Three other index tokens, NFTP, ORCL5, DEGEN are doing well as Laurence Day the contributor and member of the Indexed DAO explained. The sixth asset FFF which is a meta index contains DEFI5 and CC10 was damaged and will have to end in its current form, adding that the compensation plan will be put together.
The ultimatum has not been met.
In the minutes before the deadline elapsed, @ZetaZeroes made changes to his accounts that have made us realise at the last minute that the attacker is significantly younger than we thought.
— Indexed Finance (@ndxfi) October 17, 2021
The project’s members identified the hacker on Friday because he didn’t cover his tracks off-chain well enough. They gave him an ultimatum, return the funds until Saturday or they will contact law enforcement. However, members of the DAO have put the break on the conditions because they found out the hacker was younger than they thought. Day said that the project is in a desperately tense situation and was figuring out what to do next. He said that a few other people on the protocol’s team verified who the hacker was and it was now up to him to return the funds. DeFi is an experimental industry as the protocols are brand new and it is prone to hacks. Indexed is not the first one to suffer an exploit but the list of Defi hacks is getting longer throughout 2021.
Back in August, a hacker ran off with $25 million from lending and borrowing platform Cream Finance while most projects were able to restore some of the stolen funds.
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