NFT Audius Music Platform Loses 18 Million Cryptocurrency to Scammer
NFT Music Platform Audius has confirmed that it is being operated by cybercriminals, costing the crypto firm around $6 million. Audius is a music streaming and sharing platform that empowers content creators, making it a decentralized platform.
The platform allows listeners to support artists directly through its native cryptocurrency, AUDIO. As of December 2021, Audius had nearly 6 million monthly unique users and hosted over 100,000 artists.
According to MisTrack, a cryptographic compliance platform, Audius was recently exploited, resulting in the loss of 18.5 million audio tokens. It looks like $6 million in audio tokens only traded for just over $1 million in Ethereum. The funds were exchanged via Uniswap for 705 ETH and remain at the scammer’s address at this time. Uniswap is a decentralized cryptocurrency exchange.
“Our team is aware of reports of an unauthorized transfer of AUDIO tokens from the community treasury. We are actively investigating and will report to you as soon as we know more,” Audius said in a tweet. found and fixes are underway to bring things back to a stable state. To prevent further damage, all Audius smart contracts on Ethereum had to be discontinued, including the token. We don’t think other funds are at risk.
Notably, the transaction history of the scammer’s crypto wallet reveals that he once received crypto tokens through Tornado Cash, a private crypto mixer. This protocol is typically used to transfer cryptocurrency, providing complete anonymity.
It should be noted that the rise of DeFi, which facilitates crypto-denominated lending outside of traditional banks, has been a significant factor in the increase in stolen funds and scams. Hackers have targeted DeFis the most, in another warning for those getting started in this emerging segment of the crypto industry.
“DeFi is one of the most exciting areas of the broader cryptocurrency ecosystem, providing tremendous opportunities for entrepreneurs and cryptocurrency users,” Chainalysis wrote in its annual Crypto Crime Report. .