Indexed Finance developers say they have identified the hacker who robbed them

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Command DeFi-Project Indexed Finance claims to have figured out an attacker who removed approximately $ 16 million worth of assets from the protocol.

Indexed Finance offers users access to digital indexes targeted at the crypto industry. These instruments are ERC-20 tokens placed in liquidity pools managed by a “fork of the Balancer protocol”.

On October 15, an attacker exploited a vulnerability in the mechanism for rebalancing the project’s liquidity pools. The attack affected two index tokens – DEFI5 and CC10. To implement it, the attacker used instant loans.

On October 16, the protocol developers issued an ultimatum to the hacker. They gave him time to return the funds before the end of the day and threatened to publish his data and contact law enforcement agencies otherwise.

The attacker did not return the funds on time, but the Indexed Finance team also failed to comply with their threats. The developers explained that the changes in the account made by the hacker made them understand that he was much younger than they thought.

Indexed Finance team member Laurence Day told Decrypt that in addition to DEFI5 and CC10, another asset was affected – the FFF meta-index.

According to Day, the token in its current form will have to be liquidated. The project is developing a compensation plan for users.

On October 17, the alleged hacker, nicknamed ZetaZeroes, wrote that someone had copied his attack and withdrawn $ 5 million worth of assets from the FFF pool.

He called his actions arbitration and expressed doubts about the disclosure of his identity by the Indexed Finance team.

“You have bargained. There’s nothing you can do. If you and your liquidity providers took the time and effort to better understand Balancer’s pools, you could have prevented and even surpassed me, ”he wrote.

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