Audious – a non-fungible music platform (NFT) – is Latest victim of cyber theft. The attackers stole nearly $6 million worth of cryptocurrency units.
Audios lose a lot of encryption
The point with Audius is that it puts all the power in the hands of those who share their music with users in the organization. As a fully decentralized platform, musicians can publish their songs which are then purchased in NFTs formats. From there, they earn all of their music ownership rights and earn money when users buy or download their work. They do not owe any money to their managers, agents, or other members of their entourage.
As of last December, the company has hosted over 100,000 artists and boasts over six million users.
Crypto-compatible platform Mis Track reports that Audius has seen more than 18.5 million audio tokens – the company’s official cryptocurrency – taken from one of its wallet systems. It was worth about $6 million at the time of the theft, and it traded for just over $1 million in Ethereum. The money was exchanged through the Uniswap exchange and remained at the fraudster’s personal address.
In a tweet, the voice explained:
Our team is aware of reports of unauthorized transfer of voice tokens from the community treasury. We are actively investigating and will report back as soon as we know more. The issue has been found and fixes are in progress to bring things back to a stable state. To prevent further damage, all Audius smart contracts on Ethereum, including the token, have been shut down. We don’t think any other money is at risk.
The transaction log also shows that the attacker initially received the tokens through a mixing service known as Tornado Cash. These types of services provide complete anonymity when transferring funds and are often used for illegal purposes such as money laundering or money laundering.
Chainalysis, a blockchain analytics firm, has suggested in the past that the decentralized finance (Defi) space is a growing haven for crypto crime. Recently, the company announced in a report:
Defi is one of the most exciting areas in the broader cryptocurrency ecosystem, presenting huge opportunities for entrepreneurs and cryptocurrency users alike.
The right time for cybercrime?
2022 was a big year for crypto crime, with incidents like the one involving the Harmony exchange in Northern California wiping hundreds of millions of dollars off digital books. Most recently, the company lost more than $100 million at the hands of Lazarus, a North Korea-based hacking group that has been identified as the responsible party behind many of the world’s largest – and most recent – cyber attacks.
The group has also been linked to a $600 million+ hack involving digital gaming platform Axie Infinity that occurred earlier in the year.
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