In brief
- A DAO proposal is seeking to reimburse $768,026 in USDC to affected users.
- But victims must submit KYC and law enforcement reports.
- The vote currently stands at 53.47% in favor, 46.53% against.
The 1inch Foundation has submitted a new proposal to its decentralized autonomous organization to compensate users affected by an October 2024 exploit.
The proposal, dubbed 1IP-80, outlines a reimbursement plan of $768,026 in USDC—the estimated value of the stolen tokens at the time of the attack—to be sourced from the DAO’s treasury.
The DeFi DEX aggregatir Foundation would oversee the verification and distribution process, requiring victims to complete Know Your Customer identity verification, provide evidence of losses, file a report with law enforcement, and sign a compensation agreement.
It did not specify precisely what KYC would be required. 1inch does not require users to complete a KYC process to trade on its platform, making it a popular choice for those who prefer not to use centralized exchanges that have this requirement.
A case is currently under investigation in the Canary Islands, whereby victims would also need to waive their right to any funds recovered in the future.
An exploit occurred on October 30 last year, when attackers compromised the 1inch decentralized application via a supply chain vulnerability in the Lottie Player library, a plugin used for animations on websites.
Unlike the more recent $5 million breach of 1inch in March 2025, which saw the return of most funds through negotiations with the hacker, no restitution was previously made in the October case.
Under the proposal, the DAO would transfer the funds to the Foundation, which would process claims and disburse compensation. Victims would be required to forfeit any rights to recovered assets, which would instead be returned to the DAO treasury.
As of publication, 30 votes have been submitted. The vote currently stands at 53.47% in favor (3.8 million votes) versus 46.53% (3.3 million) against.A single large voter wallet dominates each side.
One wallet accounts for the entire 3.3 million ‘no’ votes, while another holds 2.2 million of the 3.8 million votes in favor.
The dissenting wallet argues that the DAO should not act as an insurance fund, citing a lack of recurring revenue. The vote remains open until June 22.
Edited by Sebastian Sinclair
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
