Animoca Brands’ Lympo NFT platform hacked for $18.7 million

The hot wallet security breach caused 165.2 million LMT tokens to be lost by Lympo, a subsidiary of Animoca Brands and Sports NFT minting platform.

The Lympo team provided a brief Medium update stating that hackers had accessed Lympo’s operational hot wallet on Jan. 10, and “stole approximately 165.2 millions LMT” from it.

The post states that the attack compromised ten project wallets. Most of the stolen tokens were sent directly to one address. They were then swapped for Ether on Uniswap or Sushiswap for Ether (ETH), and sent elsewhere.

LMT prices fell 92% to $0.0093, after hackers transferred and sold the loot out of the hot wallets.

In a subsequent tweet, the team said that they were “working to stabilize the situation and resume all operations back to normal.”

#Lympo gives an update on the $LMT token slippages and hacking that took place on January 10, at 12:32 UTC. We’re working on stabilizing the situation and resuming all operations back to normal.https://t.co/[email protected]
— Lympo.io (@Lympo_io January 10, 2022)

Trading LMT pools means traders won’t be able buy or sell significant amounts of tokens and will experience a drastic loss in value.

The team advised traders not to buy or sell any LMT tokens until they had completed their investigation and decided the best course of action.

Lympo, a subsidiary of Animoca Brands may be eligible for intervention by the Animoca team. Yat Siu, CEO of Animoca, told Cointelegraph that Lympo is being assisted on a recovery plan. However, there are no specific mechanisms.

This is the second most popular wallet hack of the week

The Jan. 8 loss of almost $7 million was also caused by a security breach at LCX, a central crypto exchange. The hacker stole eight crypto assets and a stack of them in this instance.

LCX suffered losses of MKR and ENJ, LINK. QNT, SAND. ETH, LCX, USDC. Most of the funds were converted into ETH and sent to Tornado Cash. This privacy tool hides the origin and destination of ETH.

Similar: ImmuneFi reports $10B in DeFi hacks losses and gains across 2021

On Jan. 10, the LCX team issued an update reassuring users that they would receive compensation for any losses and that personal data had not been compromised in the attack. The team wrote:

“LCX will use its own funds to compensate users affected by the incident.” The incident will not have any impact on user balances at LCX.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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