Alex Hoffman, the head of ecosystem at Superposition Finance, has finally revealed his identity as the anonymous co-founder of decentralized finance (DeFi) yield protocol Nirvana Finance. This comes after the protocol was hit by a $3.5 million flash loan exploit two years ago, marking the “worst day” of Hoffman’s life.
The fateful morning of July 28, 2022, started with the shocking discovery that all funds in Nirvana Finance had disappeared. Hoffman shared this harrowing experience in an exclusive interview with Cointelegraph. The search for the hacker responsible for the exploit lasted a grueling 17 months, leading to the arrest of software engineer Shakeeb Ahmed in December 2023. Ahmed was sentenced to three years in prison for his role in the hack.
The investigation into the sophisticated exploit faced numerous challenges, with blockchain investigators hitting dead ends until a fortuitous Telegram message from a Homeland Security officer provided a breakthrough. This message linked the Nirvana Finance hack to a previous exploit, prompting collaboration between authorities and Hoffman to unravel the mystery.
Despite the stress and threats he faced during the investigation, Hoffman remained determined to clear his name and set the record straight about his involvement in Nirvana Finance. The protocol, which saw rapid growth in its early days, caught the attention of Solana CEO Anatoly Yakovenko, who pushed for a security audit to be conducted.
Today, Nirvana Finance remains insolvent, but plans for its future are still underway. Investors are advised to exercise caution when trading the native token Nirvana (NIRV). The story of Nirvana Finance serves as a cautionary tale in the world of decentralized finance, highlighting the importance of security audits and transparency in the industry.