- Another cryptocurrency hack took place in the industry, resulting in a loss of about $18.7 million worth of LMT tokens, on January 10.
- The platform released its official statement via Medium, in which they explained that the compromised tokens were transferred to a single address and swapped for Ether (ETH) before being transferred further.
- Following the hack, the token prices, which were trading on an average price of $0.0898, fell massively to $0.007 and are now trading at $0.0059 (at the time of writing).
The cryptocurrency industry has grown massively over the past year. The industry has also seen mass adoption with several developments in the industry. However, with growth and adoption, regulation and malicious crypto activities followed. As reported by The Coin Republic earlier, the hacks and scams related to cryptocurrencies have doubled from 2020 to 2021, surging by 550% in a year.
The most recent hack in the crypto industry is the hot wallet hacking of Lympo, which is a subsidiary of Animoca Brands and a sports NFT platform. The bad actors compromised the platform’s hot wallets and stole about 165.2 million LMT tokens worth $18.7 million at the time of the hack. Although hacks aren’t too frequent in the cryptocurrency industry, the risk still crawls around, which several protocols fear, and some suffer.
The platform released its official statement via Medium, in which Lympo confirmed that the recent hack took place on January 10, when the hackers compromised protocol’s operational hot wallet and managed to steal 165.2 million LMP tokens.
10 Project Wallets Compromised!
The statement also included information that wallets of 10 different projects were compromised in this cybersecurity attack. The platform revealed that all the stolen tokens were transferred to a single address, where they were swapped for Ether (ETH) on Uniswap and Sushiswap and were finally transferred somewhere else. Following the hack of LMT tokens via hot wallets, the token price plunged, reaching $0.007 from $0.1204 at the time of the hack.
The token has an average trading price of $0.0898 over the past 30 days, which saw a sudden fall on January 10 following the hack and is now trading at $0.0059 (at the time of writing) after facing a downtrend of 14.70% in the past 24 hours. The token has an all-time high of about $2.70, with a max supply cap of 1.25 billion. The chart below shows the prices of LMT token over the past 30 days, with the drop resulting from a hack.
The platform released a tweet on the same day explaining that the hack took place around 12:32 pm UTC, and it is making constant efforts to make the situation stable and resume its operations as usual. The team behind Lympo said that they would remove liquidity LMT from the liquidity pools, which would minimize the disruption of token prices. On January 11, the platform asked its users to halt trading activities of LMT token until and unless they complete the investigation and understand the vulnerable point of action.
Animoca Helping Lympo
Since the platform is a subsidiary of Animoca Brands, the team at Animoca has given complete support to Lympo to recover as soon as possible. The CEO of Animoca Brands said that they are constantly helping Lympo to recover from loss, however, they haven’t chosen any mechanism yet.
The statement of Lympo on Medium said that they are still investigating the incident and assured all holders of the token that they would get back to normal functioning soon. The platform also said that they are working on ways to manage the effects of this hack and would share everything with the community as soon as they reach a decision.