Indexed Finance, pools emptied: hack or “incident”
Indexed Finance, pools emptied: hack or “incident”
Security

Indexed Finance, pools emptied: hack or “incident”

By Eleonora Spagnolo - 14 Oct 2021

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The DeFi platform Indexed Finance suffered an incident that allegedly caused it to lose at least $16 million in funds. 

It is still too early to speak of a hacker attack, but it appears that at least two pools have been emptied. 

Attack on Indexed Finance

The platform announced via Twitter that it was aware of an incident that allegedly affected pools DEFI5 and CC10

The platform has currently blocked other pools that are safe. 

The founder of the platform, Dillon Kellar announced that he understands what happened, and an analysis will follow. 

For both of the emptied pools, he has posted transactions on Etherscan that suggest the token theft was massive.

According to the bot on Discord, the two pools that are now inaccessible are left with $288,000 and $2 million in TVL, respectively. The other pools have much higher amounts, which suggests that the hack is localized.

Indexed Finance
Indexed has been launched on December 2020

The community is certain: it was a hacker attack

On Discord, Indexed Finance users admit that the platform was the victim of a hacking attack and it is assumed that at least 16 million dollars have disappeared

The hope of those who have realized that they have lost everything is that this hack is a repeat of what happened to Poly Network. In that case, the hacker first emptied the platform and then returned the funds: all he wanted was to demonstrate that there was a vulnerability. But some are rather pessimistic.

The price of the NDX token drops

As soon as the news spread, the price of the Indexed Finance Governance Token, (NDX) plummeted. It is currently down 22%. The token is at position 3,411 on CoinMarketCap, it was worth $3.5 but is currently at $2.5. 

It is still unclear whether the incident is a tombstone for the DeFi project or whether there will be a way to recover the funds or possibly compensate users and restart. 

The platform has only been able to warn users not to buy DEFI5, CC10 and FFF, as they are completely out of sync. But the cause of the incident has been identified and will soon be disclosed. The message concludes: 

“Our apologies to all affected”.

Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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