Lympo, Animoca Brands’ NFT platform, was hacked for $ 18.7 million
Sports NFT Minting Platform suffered a security breach of several hot wallets, resulting in the loss of $ 18 million LMT tokens
• According to an update published on Medium by the same team from Lympo, a non-fungible token minting platform (NFT) and a subsidiary of Animoca Brands, the project allegedly suffered a violation of the hot wallet, costing him 165.2 million LMT tokens, since worth $ 18.7 million at the time of the hack.
According to the post, 10 different project wallets were compromised with the attack. It appears that most of the stolen tokens were sent to a single address, exchanged for Ether (ETH) on Uniswap and SushiSwap, and subsequently forwarded elsewhere. As a result, the price of LMT dropped 92% to $ 0.0093.
A subsequent tweet on Tuesday reported that the team is working to “stabilize the situation and bring all operations back to normal.” The team also stated that it had removed LMTs from liquidity pools to “minimize distortions in the token’s performance”:
“#Lympo provides an update on the $ LMT token shift and hack that occurred on January 10 at approximately 12:32 UTC. We are working to stabilize the situation and resume all operations to normal. ”
Removing liquidity from LMT trading pools means eliminating the ability for traders to buy or sell significant quantities of tokens without experiencing a large loss in value on the trade.
Also on Tuesday, the team invited traders to refrain from buying or selling LMT tokens during the investigation and until the dynamic to be undertaken has been chosen.
As a subsidiary property of Animoca Brands, Lympo can benefit from the intervention of the Animoca team. Yat Siu, CEO of Animoca told Cointelegraph: “We are working with Lympo to assist them in a recovery plan, but we don’t have any specific functionality.”
The second hot wallet hack this week
Centralized crypto exchange LCX also suffered a security breach on one of its hot wallets on Saturday, resulting in the loss of nearly $ 7 million. This time, the hacker stole eight different crypto assets.
LCX lost several amounts of Maker (MKR), Enjin (ENJ), Chainlink (LINK), Quant (QNT), The Sandbox (SAND), ETH, LCX and USD Coin (USDC). Most of the funds were converted into ETH and then sent to Tornado Cash, a privacy tool developed to hide the source and destination of ETH transactions.
Related: ImmuneFi: More than $ 10 billion stolen in DeFi hacks and flaws in 2021
On Monday, the LCX team released an update, reassuring users that they will be reimbursed for their losses and that no personal data was compromised during the attack. The team reported:
“LCX will use our funds to cover the incident and reimburse affected users. There will be no impact on the balances of LCX users ”.