Subsidiary of Animoca Brands Loses $18 M in a Hot Wallet Hack

dWeb.News Article from Daniel Webster dWeb.News

Animoca Brands subsidiary, Lympo, an NFT platform that specializes in the minting of sports-related collectibles, has lost $18 million to a hack of several of its hot wallets.

According to a Medium post that announced the breach of security, the team stated that it lost 165.2 million LMT tokens after a hacker gained access to the main operational wallet of its subsidiary, Lympo. It added that 10 projects that are collaborating with Lympo were compromised in the attack.

The hacker exchanged the stolen tokens at Sushiswap for ETH, Uniswap, and then sent them to an unidentified account after apparently mixing them at a cryptocurrency tumbler.

LMT Prices Tumble Following the News

LMT lost 92% of its value, dropping to $0. 0093 after it became apparent that a hacker had gained access to the tokens. The team later sent out a tweet to its community on January 11, stating that they were working to ensure that the platform is stabilized to ensure that operations are resumed.

They also stated that LMT had been removed from liquidity pools in order to prevent any disruptions to the price. Large volume orders placed by traders will not be fulfilled promptly due to the suspension of the liquidity pool. Traders could suffer significant losses as a result. If the order is large, it is best not to trade on assets with low liquidity.

According to the tweet:

Lympo provides an update on the LMT token slippage and hacking that occurred on January 10th at approximately 12: 32 pm UTC. We are working to stabilize the situation and bring all operations back into normal.

Animoca Supports Lympo For Recovery

In an announcement on January 11, the Lympo team advised traders to avoid trading the LMT token until they decide on the best route to take after investigating the cause of the security breach on the wallet.

Sequel: Lympo’s parent company, Animoca, said that it would provide support to Lympo in order to allow the NFT platform to overcome the attacks. Yat Siu (CEO of Animoca), stated in a statement that it would provide support to Lympo to enable the NFT platform to overcome the challenges associated with the attack.

“We are working with Lympo to assist them on a recovery plan, but we don’t have any specific mechanisms.”

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