Animoca Brands’ sports NFT platform subsidiary Lympo has reported an alleged leak of millions of LMT tokens from its platform in a hot wallet compromise. Per the released statement, Lympo has lost roughly 165.2 million LMT tokens, worth about $18.7 million when the hack took place.
We are investigating the incident and how we can make up for it for our community. At this point, we recommend not buying or selling additional LMT tokens.
Thank you for your patience and understanding ❤️
— Lympo.io – Crypto Community (@Lympo_io) January 10, 2022
Detailing the hack, the Lympo team revealed that the hacker was able to access 10 of its operational wallets to steal the coins. As per data by Etherscan, most of the tokens were sent to a single private address, which were later converted into Ethereum using DEXs Uniswap and Sushiswap.
“In response to this attack, Lympo enacted safeguards to ensure that no additional LMT could be stolen by the hackers,” the Medium article read. It also noted that Lympo has removed LMT from various liquidity pools “to minimize disruption to token prices following the hack.”
Soon after, the token dropped by 92% to $0.0093 on Monday. However, the token has miraculously recovered since then and was trading at $0.0268, up by 237.3% from yesterday.