Sports NFT minting platform Lympo, a subsidiary of Animoca Brands, lost 165.2 million LMT tokens in a hot wallet security breach. They were worth $18.7 million at the time of the hack, CoinTelegraph reported.
According to a post on Medium, hackers gained access to Lympo’s operational hot wallet on January 10. They stole a total of around 165.2 million LMT from it. In the attack, ten different project wallets were compromised. Most of the tokens stolen were sent to a single address, exchanged for Ethereum on Sushiswap and Uniswap, then transferred somewhere else.
Lympo token price loses 92% in value
The price of LMT lost 92%, falling to a mere $0.0093 in the wake of the attack. Today, the Lympo team tweeted that they were working on stabilizing the situation and resuming operations. They have removed liquidity LMT from liquidity pools to “minimize disruption to token prices.”
Lympo provides an update on the $LMT token slippage and hacking that occurred on January 10th at approximately 12:32 pm UTC. We’re working on stabilizing the situation and resuming all operations back to normal.
Eliminating liquidity from pools that trade LMT means people won’t be able to trade high amounts of the tokens without suffering severe losses. Lympo encourages traders to refrain from buying or selling any LMT tokens pending an investigation and deciding on the best course of action moving forward.
The platform might get help from Animoca as its subsidiary. Animoca CEO Yat Siu told CoinTelegraph:
We are working with Lympo to assist them on a recovery plan, but we don’t have any specific mechanisms.
Not the week’s first hot wallet hack
On January 8, crypto exchange LCX also suffered a hot wallet security breach, resulting in a loss of almost $7 million. The cybercriminal stole stacks of eight different crypto assets: LINK, QNT, MKR, ENJ, LCX, USDC, SAND, and ETH. Most of the assets were exchanged for ether. Then, the ether was sent to privacy mixer Tornado Cash to hide its source and its destination.
Yesterday, the LCX team released an update, assuring holders that they would receive compensation for the losses they have suffered. They added that no personal information was lost in the attack. The team wrote:
LCX will use our own funds to cover the incident and compensate affected users. There will be no impact on user balances at LCX.
