Web3 is Going Just Great

The "yes" votes are currently in the lead with a 63% margin. The most yes votes came from sushigov.eth, the official SushiSwap team address, which also created the proposal. It is the first time that address has ever participated in a governance proposal.

The 5.5 million yes votes from the team wallet, plus another 3.1 million delegated from other community members, were enough to push the vote to majority support. A former SushiSwap contributor has also alleged that the SushiSwap team was manipulating the vote with additional wallets.

On Twitter, Sushi's "Head Chef" claimed that he had consulted with lawyers and then authorized the voting activity out of fear of an "extortative [sic] governance attack attempt".

Plasma paused the protocol after detecting the attack.

The first attacker, who stole the bulk of the assets, sent an on-chain message to Prisma claiming that they had performed a "whitehat rescue", and inquired about returning the funds. In later messages, however, they asked the project to answer questions about their security practices and projects' responsibilities to users to prevent attacks. The attacker then transferred the stolen funds to Tornado Cash — indicating their return is unlikely.

In another message, the attacker was angry that Prisma had not expressed gratitude to them or remorse to their users, and was angry they had used terms like "exploit" and "attack" in their description of the incident. They demanded that the team reveal their identities, apologize, and thank the attacker in an online press conference.

One of the co-founders, known only as "Paul", claimed on Discord that he was "trying to investigate" the movement of funds, which have been blamed on the project's other co-founder, John Kim.

Conversations on Discord suggest that a remaining $3 million in treasury funds were protected, and that the remaining LENX team may have been able to convince Binance to freeze the account that received stolen funds. However, little has been verifiably confirmed to date.

LENX is backed by the Frax Finance lending protocol.