Sports NFT Marketplace Lympo Suffers An $18.7 Million Hack
January 16 2022 - 5:00PM
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The latest in the industry is the hacking of Lympo, a sports NFT
platform and a subsidiary of Animoca Brands. Through hot wallet
hacking, the platform just lost about 165.2 million LMT tokens,
equivalent to $18.7 million during the time of this hack.
Cryptocurrency hacking, though not frequently experienced, remains
of the risks that some protocols have to suffer. An update through
Medium from the Lympo team confirms the recent hacking from the
platform on Jan 10. According to the report, the hackers accessed
the protocol’s operational hot wallet and looted about 165.2
million LMT tokens. Related article | Is Norton 360 Mining
Ethereum In Your Computer? If It Is, They’ll Take a 15% Cut
Furthermore, the post revealed that the cybersecurity attack led to
the compromise of 10 different project wallets. Also, the majority
of the hacked tokens were moved to one single address from where
they were swapped on both Sushiswap and Uniswap for Ether (ETH) and
were later transferred somewhere else. With this looting of the LMT
from its hot wallets, the price of the token plummeted by 92% to
$0.0093. Lympo Team To Fix Grudges Subsequently, the protocol’s
team released a tweet stating that they are striving to
stabilize the circumstance as well as to return their operations to
normal. Additionally, the team mentioned its removal of liquidity
LMT from liquidity pools. According to them, this will help in
reducing the crypto price disruption. Moreover, the team by the
early hours of Jan 11, advised traders to place a hold on the
buying and selling of LMT tokens. They intend to first complete
their investigation and outline their possible line of action. With
the removal of liquidity from pool trading LMT, there will be a
negative effect for traders. This means the traders can’t buy or
sell remarkable token amounts without encountering some value loss.
Being a subsidiary of Animoca Brands, the Animoca teams has fully
thrown their support to Lympo. In one of his speeches, Yat Siu, the
CEO of Animoca said that they are helping Lympo with for recovery
though they have not taken any specific mechanism for that. Another
Crypto Hacking On Hot Wallet Similar to Lympo’s hot wallet security
breach, a centralized crypto exchange, LCX, on Jan 8, lost about $7
million from its hot wallet. This hacking cuts across 8 different
crypto coins on the exchange. Most of the funds from the LCX
hacking were swapped for ETH. The proceeds were later transferred
to Tornado Cash which is a privacy tool with the feature of
concealing both the source and destination of ETH tokens. The LCX
hacking involved different amounts of LINK, MKR, USDC, ETH, LCX,
SAND, QNT, and ENJ. Related article | More Green Energy:
Crypto Mining Saves A Hydro Power Plant In Costa Rica Through its
update on January 10, the LCX notified its users of its
compensation plan for their losses. Also, it assures them that
there was no compromise of any personal data from the attack.
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