Sports NFT Marketplace Lympo Suffers An $18.7 Million Hack

Lympo is a NFT platform for sports and a subsidiary Animoca Brands. This hack is the latest to hit the market. Hot wallet hacking caused the hack to result in the loss of 165.2 million LMT tokens. This is equivalent to $18.7million.

Even though cryptocurrency hacking may not be as common, there are still risks to protocols.

The Lympo team has posted a Medium update confirming the hacking of the platform in January 10. According to the report, the hackers accessed the protocol’s operational hot wallet and looted about 165.2 million LMT tokens.

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The post also revealed that 10 project wallets were compromised in the cyberattack. The majority of the hacked coins were also moved to one address, where they were exchanged on Sushiswap (ETH), and later transferred elsewhere.

This looting of LMT from hot wallets caused the price to plummet by 92%, dropping to $0.0093.

Lympo Team to Resolve Grudges

Subsequently, the protocol’s team released a tweet stating that they are striving to stabilize the circumstance as well as to return their operations to normal. The team also mentioned the removal of liquidity LMT (liquidity pools) They claim that this will decrease the price volatility.

The team also advised traders that they should place a stop to the selling and buying of LMT tokens in the wee hours of January 11. The team will first finish their investigation, and then outline the possible course of action.

There will be a significant negative impact on traders due to the elimination of liquidity from LMT pool trading. This means the traders can’t buy or sell remarkable token amounts without encountering some value loss.

Lympo has been supported by the Animoca Brands subsidiaries. Yat Siu from Animoca, CEO, stated in one speech that the company is supporting Lympo for its recovery even though it has not yet taken any specific mechanisms.

Another Crypto Hacking on Hot Wallet

Similar to Lympo’s hot wallet security breach, a centralized crypto exchange, LCX, on Jan 8, lost about $7 million from its hot wallet. Hacking has affected eight different coins of the exchange.

The majority of the funds earned from hacking the LCX were exchanged for ETH. Tornado Cash, a privacy tool that hides both source and destination of ETH tokens, was later able to receive the proceeds. You could hack LCX with different amounts of LINK and MKR as well USDC, ETH and LCX. QNT, ENJ, SAND, QNT, LCX, LCX, LCX, LCX, LCX, LCX.

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The LCX updated its users on January 10 to inform them of the compensation plan it has for their losses. It also assures users that no personal information was compromised by the attack.

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