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Hacker drains $1.08M from Audius following passing of malicious proposal

Hacker drains $1.08M from Audius following passing of malicious proposal

Proposals in crypto assist communities make consensus-based choices. However, for decentralized music platform Auduis, the passing of a malicious governance proposal resulted within the switch of tokens value $5.9 million, with the hacker making away with $1 million. 

On July 24, a malicious proposal (Proposal #85) requesting the switch of 18 million Audius’ in-house AUDIO tokens was authorised by neighborhood voting. First identified on Crypto Twitter by @spreekaway, the attacker created the malicious proposal whereby they have been “able to call initialize() and set himself as the sole guardian of the governance contract.”

Further investigation from Auduis confirmed the unauthorized switch of AUDIO tokens from the corporate’s treasury. Following the revelation, Auduis proactively halted all Audius sensible contracts and AUDIO tokens on the Ethereum blockchain. 

Blockchain investigator Peckshield narrowed down the fault to Audius’ storage format inconsistencies.

While the hacker’s governance proposal drained out 18 million tokens value practically $6 million from the treasury, it was quickly dumped and offered for $1.08 million. While the dumping resulted in most slippage, traders beneficial an instantaneous buyback to forestall present traders from dumping and additional decreasing the token’s ground worth. 

Investors are but to get readability on the stolen funds as one investor requested, “They hacked the community fund right? The team’s fund is separate correct?”

While a autopsy report is underway, Audius has not but responded to Cointelegraph’s request for remark.

Related: Yuga Labs warns of ‘persistent threat group’ concentrating on NFT holders

Bored Ape Yacht Club (BAYC) creator Yuga Labs issued its second warning about an anticipated “coordinated attack” on its social media accounts.

In June, Gordon Goner, pseudonymous co-founder of Yuga Labs, issued the primary warning of a attainable incoming assault on its Twitter social media accounts. Soon after the warning, Twitter officers actively monitored the accounts and fortified their present safety.