1inch Foundation proposes the use of user compensation after October Hack

The 1inch Foundation has submitted a new proposal to its decentralized autonomous organization to compensate users affected by an exploit of October 2024.

The proposal, called 1IP-80, contour A reimbursement plan of $ 768,026 in USDC – the estimated value of the stolen tokens at the time of the attack – to come from the dao treasury.

The Defi Dex Aggregatir Foundation would supervise the verification and distribution process, whereby victims must be asked to complete your customer identity verification, to provide evidence of losses, submit a report to the law enforcement and to sign a compensation agreement.

It did not indicate exactly what KYC would be. 1 Inch does not require users to complete a KYC process to act on its platform, making it a popular choice for those who prefer not to use centralized stock exchanges that have this requirement.

A case is currently being investigated in the Canary Islands, whereby victims also have to abandon their right to all money recovered in the future.

An exploit took place on October 30 last year, when attackers endangered the 1 -inch -decentralized application through a supply chain vulnerability in the Lottie Player Library, a plug -in that was used for animations on websites.

In contrast to the more recent $ 5 million infringement of 1 inch in March 2025, which saw the return of most funds through negotiations with the Hacker, no refund was made in October.

According to the proposal, the DAO would transfer the funds to the foundation, which would process claims and expand reimbursements. Victims would be obliged to forfeit all rights to recovered assets, which would be sent back to the DAO Treasury instead.

30 votes have been submitted from publication. The vote is currently 53.47% in favor (3.8 million votes) versus 46.53% (3.3 million) against. A single large vendor bielling dominates each side.

One wallet is responsible for the entire 3.3 million ‘no’ votes, while another 2.2 million of the 3.8 million votes occur.

The different wallet argues that the DAO should not act as an insurance fund, with reference to a lack of recurring income. The mood remains open until 22 June.

Edited by Sebastian Sinclair