NFT Minting Platform Lympo Compromised - $18.7M in Digital Assets Stolen

NFT Minting Platform Lympo Compromised - $18.7M in Digital Assets Stolen

The sports athlete-based NFT ecosystem Lympo has been subject to a hack that resulted in a loss of almost $20M.

Lympo was initially a Lithuanian-based startup that used blockchain technologies to track and monetize health data via LYM tokens. In December 2020, it became the subsidiary of Honk-Kong-based software/venture capital company Animoca Brands which pushed Lympo towards the NFT sector. 

Fast forward into January 2022, an official announcement by Lympo on Medium came out, informing users about the hack that happened on Monday, January 10th. The announcement highlighted that multiple hot wallets on Lympo were compromised, resulting in a loss of over 165 million LMT tokens, valued at $18.7M.

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Due to the hack, the company has shut down LMT liquidity pools, and is working to prepare "a comprehensive plan on how the effects of this attack will be remediated and will share it with the community as soon as it’s available."

Lympo assured unaffected users that most of the LMT tokens are safely guarded in a cold wallet storage. Likewise, the team is working to "resume normal operations as soon as possible."  

Consequently, the prices of LMT and LYM tokens went down drastically. The original Lympo token went down almost 32%, while Lympo’s Market Token dipped by 91% in the past 24 hours.

Multiple hot wallets were subject to attacks in the past few months. In late December of 2021, DeFi protocol Grim Finance had a security breach that resulted in a loss of $30M worth of tokens

Just a couple of days ago, the Liechtenstein-based crypto exchange LCX announced that its Ethereum hot wallet got compromised, resulting in a loss of $8M worth of assets.

Dom Z. - Crypto Analyst

by Dom Z. - Crypto Analyst, BitDegree


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