Alex Hoffman, the head of ecosystem at Superposition Finance, has finally revealed his hidden identity as an anonymous co-founder of the decentralized finance (DeFi) yield protocol Nirvana Finance. This revelation comes after a $3.5 million flash loan exploit hit Nirvana Finance two years ago, causing all funds to disappear.
In an exclusive interview with Cointelegraph, Hoffman shared the story of the fateful day when he discovered the hack on July 28, 2022, just as they were preparing to start an audit. The search for the hacker lasted 17 long months, until December 2023, when software engineer Shakeeb Ahmed was arrested and sentenced to three years in prison for admitting to the hack.
The investigation into Ahmed’s sophisticated exploit was prolonged, with blockchain investigators facing dead ends until a chance Telegram message from an officer at the United States Department of Homeland Security provided a solid lead. This led to a collaboration between authorities, including prosecutors and IRS investigators, to track down Ahmed by reviewing transactions and understanding the protocol’s infrastructure.
Despite the stress and threats Hoffman faced during the investigation, he remained dedicated to clearing his name and ensuring victims knew he was not responsible for the exploit. The rapid rise and fall of Nirvana Finance took him by surprise, with the protocol gaining significant traction and attention, even catching the eye of Solana CEO Anatoly Yakovenko, who pushed for a security audit.
Today, Nirvana Finance remains insolvent, but plans for the future are in progress. Investors are advised to exercise caution when trading the native token Nirvana (NIRV) according to the project’s website. In the midst of this turmoil, Hoffman reflects on the unexpected journey of Nirvana Finance and the challenges faced along the way.