The 1inch Foundation, the organization behind 1inch.exchange, one of the largest decentralized Exchange (DEX) aggregators by Handelsvolume, has proposed a $ 768,000 reimbursement plan for users affected by an attack in the Supply Chain in October 2024.
However, the strict suitability criteria of the proposal seem unusual for a Defi protocol.
According to the 1IP-80 proposal, users must complete the identity verification, provide verifiable proof of lost funds, submit reports of law enforcement and sign a reimbursement agreement to be eligible for reimbursement. Those who do not meet one of these requirements will probably be excluded from receiving compensation.
The plan calls for the transfer of $ 768,026 in USDC from the DAO Treasury to the 1inch Foundation, which will manage claim verification and fund distribution. Victims must also agree to refrain from rights to recovered funds, which would be returned to the DAO Treasury.
From the moment of the press, only 20 portfolios voted, but 100% of the 3.3 million counted tokens are against the proposal, with open votes until 22 June.
1 Inch has yet to respond to the request of the challenge to comment. The DEX aggregator processes more than $ 1 billion in daily trade volume, according to Defillama data.
The reimbursement plan follows the attack of 30 October 2024, when a compromised update of the Lottie player library on 1-inch’s front-end hackers allowed to steal around $ 768,000 in user funds.
It remains unclear who was behind the attack, which is being investigated by the Royal Cayman Islands Police Service and Blockchain Forensic companies Zeroshadow and TRM Labs, according to the proposal of the 1inch Foundation.