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Audius loses $1 million to hackers

Audius
TL;DR Breakdown
  • Audius loses $1 million to hackers
  • The platforms storage layout malfunctioned
  • Hackers continue rampage on the crypto market

Decentralized music streaming platform Audius has announced that it lost about $1 million to unknown hackers early this morning. According to the streaming platform, it mistakenly passed a malicious proposal that saw more than $5 million worth of the platform’s tokens transferred. However, the statement mentioned that the hacker was able to cart away just a little bit above $1 million. The company said that the hackers were able to leverage its need to make a consensus decision after it asked for proposals from its community.

Audius storage layout malfunctioned

According to the statement, the proposal to move more than 18 million AUDIO tokens was sent to the platform, which the community approved. In a tweet by the first individual to realize the malicious proposal, the handle mentioned that the hacker set himself as the only custodian of the contract after he initialized the proposal. After the event, Audius later realized that more of the tokens in its treasury was gone.

With that knowledge, the platform had no other option than to suspend all transactions involving the tokens across all blockchains, including smart contracts. In a tweet by analysis firm PeckShield, the fault, was said to be from the inconsistencies discovered in the storage layout of Audius. With the hacker already taking more than $6 million worth of the in-house token, he dumped them and sold them for $1 million.

Hackers continue to ravage the crypto sector

After the dump, investors rallied around to ensure that they overcome the maximum slippage that it caused. With this, most of them initiated a buyback which would help protect other investors from selling off their tokens which could see it take a massive bearish turn. As it stand, the platform has not clarified the events that occurred as most investors have taken to Twitter to seek clarity on the issue.

By all indication, the firm is already preparing a report on the scale of the issue. However, it has refused to give a detailed analysis on its Twitter page. The issue of hacks is becoming predominant in the crypto sector recently, after Yuga Labs warned users to be careful with their accounts due to suspected potential hack of its accounts. Although an earlier warning was issued some months ago, nothing has happened. However, Twitter has beefed up the security around the company’s account should hackers try to breach it.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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