Lympo, a sports-focused NFT platform and subsidiary of Animoca Brands, has suffered a hack that saw 165.2 million LMT tokens leave its hot wallets, the platform said in a blog post on 10 January.
According to the announcement, on Monday the hacker was able to gain access to 10 of Lympo’s operational wallets and steal 165.2 million LMT tokens, which at the time of the hack were worth approximately $18.5 million. Shortly after the hacker sold his stolen tokens, the price of LMT dropped by approximately 92%. and is now being traded for $0.018 a piece. The team behind the project tweeted on Monday:
Data from Etherscan shows that most of the stolen tokens were sent to a single address. The hacker then used DeFi platforms Uniswap and Sushiswap to exchange his LMT tokens for Ethereum (ETH), which was then sent to an unidentified wallet. In order to “minimize disruption to token prices”, Lympo temporarily removed LMT from various liquidity pools shortly after the incident.
The platform also assured its users that the incident is being investigated, and that the team was working hard to resume the normal operations of Lympo “as soon as possible”. A comprehensive plan on how to remedy the effects of the attack is also being prepared, and will be made available to the community once it has been completed.
This is the second hot wallet hack in the last week, with Liechtenstein-based crypto exchange LCX losing $7 million worth of tokens last Saturday. Similarly to the Lympo accident, the hacker converted most of the stolen tokens to ETH, and then sent them to privacy tool Tornado Cash. The team behind LCX has already stated that they will use their own funds to compensate the affected users.