- A security breach of Arbitrum’s layer-2 scaling solution airdrop has resulted in the loss of approximately $500,000 worth of tokens
- The hacker exploited vanity addresses to redirect the airdropped tokens away from their intended recipients.
A recently discovered security breach of Arbitrum’s layer-2 scaling solution airdrop has resulted in the loss of approximately $500,000 worth of tokens. The perpetrator is believed to have exploited vanity addresses—customized crypto addresses containing one’s chosen words or phrases—to redirect the airdropped tokens away from their intended recipients. Vanity address generators enabled the hacker to create similar addresses, preventing the original owners from claiming their ARB tokens.
Several cryptocurrency users were dismayed to discover that their ARB tokens had been stolen, and many took to Twitter to express their anguish. Also, the reason for the theft remains unknown, leaving victims unsure of what steps they can take in order to recover their losses. Also, the affected individuals are still searching for answers.
The release of Arbitrum’s token giveaway had the crypto community buzzing and even caused some websites to crash from the overwhelming demand. Cryptopolitan reported that over 400,000 addresses have claimed their Arbitrum tokens, with over 75% of all tokens claimed by users, and 800 million ARB now held by them.
Creating a vanity address requires the use of special software or services, which could potentially compromise the security of users’ private keys. However, if hackers gain access to the private key, they would have the potential to steal any crypto assets associated with that particular address.
Some eligible addresses could not claim their token, possibly because of the hack. Nonetheless, this is not the first time that hackers have perpetrated vanity addresses. In January, MetaMask issued a warning about address poisoning in the crypto space. It is important for users to remain vigilant and take necessary precautions when handling their digital assets.