Decentralized Music Platform Audius Hit By A $6M Exploit
- The decentralized music platform Audius has been hacked and over $6 million has been drained in the exploit
- Around $6 million worth of their treasury was dumped for just $1 million, claim analysts on Twitter social media platform
The decentralized music platform with millions of monthly users, Audius, has been facing a terrible issue that might put their funds at a huge potential risk. According to the official Twitter handle of the platform, it has been hacked, but the hackers did not reveal what the actual numbers were.
As a result of the hack, a huge sum of AUDIUS token was sold which caused a significant drop in the price of the token as well. The huge dump attracted the attention of the crypto community but the token was back at the previous trading level soon after.
The hack was indeed confirmed by the official team in a series of Twitter posts which stated that it is “aware of reports of an unauthorized transfer of AUDIO tokens from the community treasury” and is “actively investigating and will report back as soon.”
While the holders of the governance token of the platform started to panic, there were a series of questions as to how the actual exploit happened. Users pointed out that someone dumped AUDIUS to such an extent that it dropped to $0.0155! Interestingly, at the time of writing, the price of 1AUDIUS is around $0.3 with a drop of 12% in the last 24 hours.
Furthermore, the team also revealed via the Twitter account that “while these fixes are being completed, token balances, transfers, etc will be temporarily unavailable.” However, the team was finally able to fix the issue and reported back with answers but no numbers.
“The issue has been found and fixes are in progress to get things back to a stable state. To prevent further damage, all Audius smart contracts on Ethereum had to be halted, including the token. We do not believe any further funds are at risk,said Audius
The post-mortem and other valid details regarding the exploit will be released soon, said the developers of the decentralized music platform.
An on-chain analyst explained the possible reason behind the hack stating that “the attacker was able to do a proposal, pass it, send themselves all the treasury tokens, then dump it on Uniswap in 1 transaction.”
Such hacks in the DeFi and NFT spaces have become common. Recently, NFT registration platform Premint was hacked and 320 NFTs And $400K worth Ether (ETH) were stolen.