Non-fungible Math token (NFT) mining platform Lympo, a subsidiary of Animoca Brands, suffered a hot wallet security breach and lost 165.2 million LMT tokens worth $18.7 million during the hack.
In a brief update to Medium from the Lympo team, it was said that on Monday, hackers gained access to the working hot Lympo wallet and “steal a total of about 165.2 million LMT from it.”
According to the report, 10 different wallets of the project were hacked as a result of the attack. It appears that most of the stolen tokens were sent to one address, exchanged for Ether (ETH) for Uniswap and SushiSwap, and then shipped elsewhere.
LMT price fell 92% to $0.0093 after hackers moved and sold mining from the project’s hot wallets.
In a follow-up tweet on Twitter, Tuesday, the team said it was “stabilizing the situation and resuming all operations as normal.” The team also said that it removed LMT liquidity from its liquidity pool to “reduce token price turbulence.”
The removal of liquidity from pools that trade with LMT means that traders will not be able to buy or sell a large amount of tokens without experiencing a sharp loss in the value of the trade.
On Tuesday morning, the team urged traders to refrain from buying or selling any LMT tokens while the investigation was completed and the second best course of action decided.
As a subsidiary of Animoca Brands, Lympo can benefit from the intervention of the Animoca team. Animoca President Yat Siu told Cointelegraph, “We are working with Lympo to help them with their recovery plan, but we don’t have specific mechanisms in place.”
The second hot wallet has been hacked this week
Central crypto exchange LCX also suffered a security breach in one of its hot wallets, resulting in a loss of nearly $7 million on Saturday. This time around, the hacker escaped with piles of eight different cryptocurrencies.
LCX lost various amounts of Maker (MKR), Engine (ENJ), Chainlink (LINK), Quant (QNT), Sandbox (SAND), ETH, LCX and USD Coin (USDC). Most of the funds were transferred to ETH and then sent to Tornado Cash, a privacy tool designed to hide the source and destination of ETH transactions.
Related: ImmuneFi Announces $10 Billion DeFi Hack and Loss in 2021
On Monday, the LCX team released an update assuring users that they will receive compensation for their losses and that no personal data was compromised during the attack. The team wrote:
LCX will use its own funds to cover the accident and compensate the injured users. This will not affect the balances of LCX users. “