Four cases in ten days.
~$415 million gone.
“Compromised keys” are so hot right now.
But it’s nothing to do with the markets, right?
The majority of the funds taken from users’ wallets was in the platform’s own token, $PYR, which is used for in-game transactions and on their native marketplace.
In order to facilitate these use cases, user accounts are linked to an integrated wallet - a service provided by Venly.
The private keys of 96 addresses were compromised, allowing the attacker to drain their contents. As well as $PYR, users also lost substantial amounts of other tokens including ETH and MATIC.
Hacker’s address on:
Funds have since been sent on to further wallets, for example this one containing ~$40M in $PYR and ~$600k in ETH.
The team claims to have identified an address that may be linked to a KYC’d exchange.
A total of over 4.5M PYR was extracted, with a value of ~$140M at the time of the attack.
Subsequent sales of the stolen PYR had a large impact on the token price, which dropped ~30% initially, from around $31 to a low of $21.47.
In contrast to the other cases, the Vulcan team has been quick to respond to the incident, posting regular updates on their Twitter feed and promising to both replace the stolen $PYR and remove the custodial wallets.
According to the latest update, the majority of affected wallets have already been reimbursed from the treasury, and the team aims to pursue a 100% decentralised system going forward.
The response from the team has been better than most, but that doesn’t mean we should be less suspicious.
“Compromised keys” can’t be analysed by outsiders; a fact which benefits only the insiders.
Who is to blame for this incident? Is it Vulcan Forged, for a lack of due diligence, or their wallet provider; Venly?
Without further details; we will never know.
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