Lympo, a subsidiary of Animoca Brands that specializes in minting sports-related collectibles has suffered a $18 million loss due to unauthorized access to several of its hot wallets.
A Medium post revealing the security breach stated that the team lost 165.2 million LMT tokens when a hacker gained access the main operational wallet at Lympo. The attack also compromised 10 other Lympo-related projects.
After mixing the tokens at a cryptocurrency tumbler, the hacker swapped them for ETH at Sushiswap or Uniswap.
LMT price tumbles following the news
LMT lost 92% and fell to $0.0093, after it was discovered that a hacker had access to the tokens. On January 11, the team sent out a tweet to its followers, stating that they were working hard to stabilize the platform so that operations can be resumed.
They also stated that LMT had been removed from the liquidity pools in order to prevent any disruptions to the price. Traders placing large volumes of orders won’t get them filled quickly due to the suspension of the liquidity pool. This can cause significant losses for traders. If the order is large, it is best not to trade on assets with low liquidity.
According to the tweet:
Lympo gives an update on the LMT token slippage and hacking which occurred around 12:32 UTC on January 10. We are working to stabilize the situation and bring all operations back into normal.
nimoca Supports Lympo For Recovery
Lympo advised traders not to trade the LMT token in a January 11 announcement. This was after they investigated the reason for the security breach.
Animoca, Lympo’s parent company, said that it would provide necessary support to Lympo in order to allow the NFT platform to overcome the attacks. Yat Siu (CEO of Animoca), stated in a statement to press:
“We are currently working with Lympo on a recovery program, but don’t have any specific mechanisms.”
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.