The decentralized music streaming service Audius has disclosed that unidentified hackers stole nearly $1 million from it early this morning.
The streaming platform claims that it accidentally approved a fraudulent request that resulted in the transfer of tokens valued at more than $5 million. But according to the statement, the hacker only managed to get away with a little bit more than $1 million. The business said that after asking for suggestions from its community, the hackers were able to take advantage of the necessity for a consensual decision.
Audius storage layout malfunctioned
Hackers Have Stolen $1 Million From Audius
The community gave its approval to a plan to transfer more than 18 million AUDIO tokens to the platform, the announcement claims. The hacker designated himself as the only custodian of the contract when he began the proposal, according to a tweet from the first person to realize the fraudulent proposal. Audius discovered additional tokens were missing from its coffers after the incident.
With that information, the platform was forced to halt all token-related transactions on all blockchains, even smart contracts. The flaw, according to a tweet from analysis company PeckShield, was due to irregularities found in Audius’ storage design. The hacker sold the in-house tokens for $1 million after having previously stolen more than $6 million worth of them.
Investors came together after the dump to make sure they were able to recover from the greatest slippage it had created. As a result, the majority of them started a repurchase to prevent other investors from liquidating their token holdings, which might cause the market to drastically turn negative. Since the majority of investors have turned to Twitter to get clarification on the situation, the platform has not yet confirmed the events that had a place.