Lympo, a sports NFT platform and a subsidiary of Animoca Brands has suffered a loss of around 165.2 million LMT tokens through hot wallet hacking, valued at $18.7 million at the time of the breach.
Cryptocurrency hacking is a threat that several protocols might face, even though it is not common.
The Lympo team confirmed the latest hacking from the network on January 10 in a Medium.com update. The hackers allegedly gained access to the protocol’s functional hot wallet and stole around 165.2 million LMT tokens, as per the report.
According to the report, the cybersecurity assault resulted in compromising ten distinct project wallets. Furthermore, the bulk of the compromised tokens were relocated to a specific address, from where they were exchanged for Ether (ETH) on both Sushiswap and Uniswap, and then relocated elsewhere.
The price of the LMT dropped by 92 percent to $0.0093 as a result of the plundering of the token from its hot wallets.
Following that, the protocol’s team sent a tweet claiming that they are working to calm the situation and restore regular operations. Liquidity LMT was also removed from liquidity pools, according to the team. This, they claim, will assist to mitigate the crypto price volatility.
Additionally, the team recommended traders seize purchasing and selling LMT tokens by the early hours of January 11. They plan to finish their inquiry first and then explain their likely course of action.
There would be a detrimental impact on traders if liquidity is removed from pool trading LMT. This implies that traders can’t acquire or sell large sums of tokens without losing some value.
Because Lympo is a division of Animoca Brands, the Animoca team has placed their entire support behind it. Yat Siu, the CEO of Animoca, stated in one of his presentations that they are assisting Lympo with recovery, albeit no precise procedure has been implemented.