Key takeaways:
- 8ight finance hacked, and all funds in the treasury were withdrawn due to a leak of the private keys as a consequence of a google doc.
- The private key was compromised, and the funds were removed from the treasury.
8ight Finance, an OHM fork on Harmony that offered to help people affected by the Snowdog DAO rug pull, lost around $1.75 Million in what’s supposedly a private key leak.
The platform tweeted about the loss yesterday and put up the explanation leading to the losses of funds in their discord server. The platform further notified the community about the loss of the private key on 6th December and assured them they were doing everything in their power to recover the losses.
“Two devs in the team have the key, and they were sent through Facebook groups chat and google drive. This is our first project, so we must admit our opsec was low. At the time when the withdrawal happened, our team was working on launching the BUSD (4,4) bonds. To be transparent with everyone, we lost a lot of money and time invested in 8ight, and it f*cking hurts to see someone else taking away everything we had built. We delivered everything on time, and we reached out to Harmony, DFK, and a lot of partnerships to try and grow EIGHT. You guys here all know the admin and the mods team worked our a*ses off, but the timing of the market, the downfall of SB and SDOG, OHM bond funds f*cked up the price action, and we tried our best to push and deliver. So our team will take in opinions and decide later on.”
8ight Finance was a yet-to-be DAO, a decentralized community-owned financial infrastructure. Further, the platform claims to offer 257,596,698% APY, which might have been possible before the recent loss.
The platform recovered an address with the help of Synapse protocol that supposedly held the funds before they were transferred to Tornado.
Cash ETH address:
0x4d8071452bF5f629eA1c72E1e42A18aebc04cA1d
The admins of the discord server have assured the investors and members who lost their funds that they wouldn’t go this far to rug the pool. However, since all the money has already been sent to Tornado Cash, it’ll be tough to identify who was actually behind the address used to transfer the funds.
The final blow for investors came when the price of EIGHT started dropping. In the previous 24 hours, 8ight has lost over 75% of its value and is down by approximately 98% since its ATH. Though this was not it, the protocol announced in the server that 8ight Finance was not safe to use anymore, and investors should stop buying 8ight tokens.
Recovery Plan
On 7th December, the protocol came up with a recovery plan on their discord server. The platform has provided two options to the community:
- They create an entirely new protocol on AVAX-liquidity borrowing and will airdrop tokens to 8ight HODLers.
- The second plan involves distributing $250,000 of marketing funds among all users.
The voting is still ongoing at the time of writing this article, and the platform will decide what to do next based on the option that receives a maximum number of votes.
Editor’s Note: It is essential that you strictly invest your hard-earned money in places you believe can keep your funds safe. And do make sure to cross-verify everything you can before investing in a contract.
