Hifi Finance Governance Takeover Moves About $1 Million in User Collateral

Blockchain researcher Spreek disclosed that a takeover of Hifi Finance’s DAO governance moved about $1 million in user collateral, putting funds deposited in the decentralized finance protocol at risk.

In Spreek’s account, four funding transfers financed through Tornado Cash were used in a last-minute vote. The vote shifted control to an attacker. After gaining control, the attacker minted 25 million governance tokens and transferred collateral held for users.

The two figures describe different things: 25 million is the number of governance tokens minted, while about $1 million is the stated value of collateral transferred from users. Spreek’s account places the collateral movement after the vote, the change in governance control and the token issuance. It presents those steps as one takeover involving Hifi Finance’s governance process and user collateral. The order matters because the account places the transfer of user assets after the attacker gained control and minted new tokens. The episode therefore links the governance vote, token issuance and collateral movement in a single sequence.