A malicious bidding scheme led to the theft of $1.08 million from Audius. Following this, Audius disabled all smart contracts on the platform.
A malicious proposal requesting the transfer of 18 million AUDIO tokens, worth approximately $6 million, was approved based on a community vote of the token.
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Details of theft of $1.08 million from Audius
Proposals in cryptocurrencies help the crypto community make the right decisions by universal voting. This had the opposite result for the music platform Audius. The approval of a malicious management proposal led to the transfer of $6.1 million in Adios tokens and a profit of $1 million to the hacker.
On Monday, Malicious Scheme #85 sent a request to transfer 18 million AUDIO tokens, and the crypto community voted to approve these transactions. Spreekaway’s Twitter account was the first to deal with this hacking attack. According to spreekaway, the attacker created a malicious proposal through which he could call the initial amount of the token and present himself as the sole custodian of the sovereign contract.
Audius founder and CEO Roneil Rumburg explained to Cointelegraph that the Audius community has never approved a malicious proposal. In this regard, he added:
The recent hack was an exploit. This attack was not considered an offer through legal means. The theft of 1.08 million dollars from Audius has been done by logging into the government system of this cryptocurrency.
The Audius team confirmed the unauthorized transfer of AUDIO tokens from the company’s treasury through further investigations. Following this incident, the Audio team stopped all the smart contracts of this platform and the AUDIO tokens available in the Ethereum blockchain. This action was taken in order to prevent further losses. Adios company resumed the transfer of tokens. The Audius team said in this regard:
The remaining transactions of the smart contract will be resumed after the full investigation and mitigation of the vulnerability.
Blockchain researcher Peckshield attributed the theft of $1.08 million from Audius to problems and deficiencies in the storage arrangement by the token’s team.
While the management bid by the hacker stole 18 million tokens worth $6 million from the platform’s coffers, the stolen Audio tokens were quickly dumped and sold for $1.08 million. After the sharp price drop of the Audio token, investors offered an immediate buyback to prevent further price dumping.
Currently, there is no clarification regarding the status of the stolen property. Ramburg confirmed with Cointelegraph that the original stolen funds could not be reused. The Audius community treasury is kept separate from the foundation treasury and the remaining funds will be protected from any exploitation.
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Source: cointelegraph