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Animoca Brands’ Lympo NFT Platform Hacked for $18M

cryptoknowmics.com 11 January 2022 09:30, UTC
Reading time: ~1 m

Sports non-fungible token (NFT) platform and Animoca Brands subsidiary Lympo confirmed that hackers stole 165 million LMT tokens worth $18.7 million from one of its hot wallets.

According to a Medium post that announced the breach of security, the team shared that 10 different project wallets were compromised in the attack. It appears that most of the stolen tokens were sent to a single unidentified address, swapped for Ether (ETH) on Uniswap and SushiSwap.

Following the hack, LMT lost 92 percent of its value, dropping to $0.0093 before recovering some of its losses. The team stated that it was 'working on stabilizing the situation and resuming all operations back to normal.'

They even removed LMT from liquidity pools to minimize disruption of its token prices. By removing liquidity from pools, traders will be unable to buy or sell any significant amount of the tokens so that they don’t have to face severe losses.

Lympo even urged traders to refrain from buying or selling any LMT tokens, after they investigate the cause of the security breach and decide on the next best course of action. The company further assured that the majority of LMT reserve sits in cold wallet storage and has remained secure and uncompromised throughout the incident.

Animoca Brands is a Hong Kong-based game software company and venture capital company that acquired Lympo in December 2020.

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