1inch DAO Proposes $768K Reimbursement for October 2024 Exploit Victims
New York | May 22, 2025
A proposal submitted to the 1inch Decentralized Autonomous Organization (DAO) aims to reimburse victims of a October 2024 exploit, with the DAO treasury set to cover $768,026 (in USDC).
- The vote, designated 1IP-80, requires affected users to verify their identity via Know Your Customer (KYC) procedures and file law enforcement reports.
- Currently, 53.47% of votes are in favor of the proposal, while 46.53% oppose it.
According to the proposal, the reimbursement fund will be drawn from the DAO treasury and distributed by the 1inch Foundation.
The Foundation will be responsible for verifying claims, necessitating that victims submit KYC documentation and reports filed with law enforcement. An additional clause requires victims to sign a compensation agreement and waive rights to any funds recovered in future investigations.
Background: The October Exploit
The proposal follows an October 30, 2024 exploit where attackers compromised the 1inch application due to a supply chain vulnerability in the Lottie Player library. This exploit led to approximately $768,026 worth of assets being stolen at the time.
Different Approach to the March 2025 Breach
This reimbursement plan comes nearly a year after another significant exploit in March 2025, also involving 1inch, where most of the $5 million in stolen funds were recovered through negotiations with the hacker and returned to users.
Concerns Regarding Treasury Usage
Opponents argue against using DAO treasury funds for such purposes, citing a lack of sustainable revenue streams to support ongoing operations. The vote remains open until June 22.
Significant Voter Influence
A single wallet holds 3.3 million votes in opposition, while another single wallet contributes 2.2 million of the 3.8 million total ‘yes’ votes currently recorded.
