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Vulcan Forged gaming platform refunds its users after losing $140 M in a cyber-attack

Vulcan

TL;DR Breakdown

  • P2E and NFT platform Vulcan Forged announced yesterday that a hacker exploited their system and made away with tokens worth $140 M.
  • Today, Vulcan Forged said they had refunded about half of the lost tokens to the affected wallets.

Vulcan Forged is a gaming platform that runs on the polygon blockchain. Yesterday, Vulcan said that it lost 9%of its native tokens to a hacker, which amounts to about $140M. Earlier today, Vulcan came out to reveal that they had refunded the tokens to the affected wallets. They also added that investigations are underway to determine how the coins were lost and possibly regain them.

According to a Tweet from the Vulcan developers, all Forge wallets are secure now, but a few still need to get refunds. The tweet also said that the team would soon conduct a buy-back and token burn procedure.

Vulcan refunds its users amid investigations for its latest cyber-attack

Vulcan is a victim of a cyber-attack that wiped out $140M from its ledgers through the illegal withdrawal of tokens from 96 wallets belonging to users. This ‘‘heist’’ claimed about 4.5 Millon PYR tokens which are 9% of their total supply.

Even though the platform’s treasury is working around the clock to refund the money to their user, it is a sad story. This news comes as a shocker after the value of PYR tokens has been plummeting throughout the week. Now, the value of PYR has been down by about 30% in the last day.

Per their CEO Jamie Thompson, the attacker mainly concentrated on the semi-custodial wallets the platform held for their users. He said the security issue was not from their wallet solutions partner, Venly, but their systems. He stated that the hacker used the Vulcan servers to dig for the private keys of the users’ wallets then wired all their holdings.

Jamie also said that his team regrets using that wallet security method and will have to adopt decentralized ones to avoid a repeat of such an occurrence.

Crypto-targeted cyber-attacks increase exponentially

As the end of 2021 approaches, the crypto space is experiencing a tumble bigger than ever before. The value of the whole market is going down in a significant way as a substantial dip dominates almost all assets spanning from BTC to Defi and other Altcoins. Another major occurrence is the exponential increase of crypto-targeted cyber attacks.

In December alone, some crypto platforms like Bitmart, BadgerDAO, MonoX, etc., have announced the illegal transfer of coins worth a fortune. BadgerDAO lost $10 M in a hack that involved sending illegal scam notifications to its users. MonoX also lost over $30 M worth of several digital assets.

One of the largest attacks of this month was on Bitmart. This exchange lost over $150 M in a hack that involved the transfer of several altcoins to unknown addresses through unscrupulous methods. These attacks all coming in the same month signals a need for better security measures in the crypto industry. However, the crypto enthusiasts can only hope for an end in sight for the crypto-targeted attacks since most of them are very mean.

Mary Brenda

Mary Brenda

I'm a content marketer with interests in emerging niche including Blockchain, Cryptocurrency, Esports, Video games and other tech. I've previous worked with a variety of clients, such as ASUS ROG, BitcoinBink, ESL India, OMEN by HP, Red Bull and more.

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