The decentralized music platform with millions of monthly users, Audius, has been facing a terrible issue that might put its 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 the actual numbers.
The current vulnerability is in the AUDIO Treasury fund management contract. However, the team has not published a post-mortem report listing relevant technical details.
As a result of the hack, a massive sum of AUDIO tokens was sold, which caused a significant drop in the price of the token. The vast dump attracted the crypto community’s attention, but the token was back at the previous trading level soon after.
The above vulnerability caused the Treasury fund to drain 18.5 million AUDIO tokens. With the market price at the time of the attack (~$0.36), this figure is worth approximately $6.6 million.
Very quickly, the entire amount of these tokens saw pressure in a single transaction. About $6 million worth of AUDIO was sold for 705 ETH (approximately $1 million at the current ETH rate).
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.”
Currently, Audius announced that it has solved the above problem and suspended the contract on Ethereum to patch the vulnerability in the fund contract temporarily.
The team has also updated that the vulnerabilities have been patched, but many features such as token transfer and balance display have not been activated because of concerns about risks.
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