Gate.io Blog Vulcan Forged hack of $140 million revealed

Vulcan Forged hack of $140 million revealed

15 December 12:29

Take aways:

Vulcan Forged is a GameFi ecosystem.
23.7% of the project’s circulating supply of tokens was stolen which represents $140 million worth of crypto.
half of the funds have been reimbursed from the project’s treasury till now.

Vulcan Forged is a platform where they can access several popular games and an NFT marketplace to buy and sell digital assets in-game. The Vulcan Forged ecosystem is driven by its PYR token & staking. Vulcan Forged is built on several networks and offers over sick blockchain games, a decentralized exchange, and even an NFT marketplace. Vulcan Forged uses a wallet management service from Venly (formerly Arkane Network) to create its wallets based on Ethereum, Polygon, and VeChain blockchains. Whenever an account is registered on Vulcan Forged, the platform manages the users’ private keys – on their behalf.
But last weekend this play-to-earn NFT platform was hacked and $140 million worth $PYR token were stolen from 96 users. Vulcan Forged is now in the process of refunding all the missing tokens to the users. Half of the tokens were already returned.

Fig 1 - Vulcan Forged ecosystem

The refund comes from the companies treasury fund, which contains money for a crisis, such as this one. The hackers secured roughly 4.5 million PYR tokens and sold them on the market. These 4.5 million PYR token are belonging to some of the biggest Vulcan Forged users. Due to that, the prices dropped from $34 to $24 within two hours. After the hack got published, the token fell further to $21.

But since the attackers sold the stolen token in small batches, they still have 2 million PYR tokens in their wallet, which is worth roughly $47 million.

All major exchanges were informed by Vulcan Forged to block this address. It also seems that the walled owner containing the stolen tokens is registered via KYC in a bigger exchange, letting to further investigations.

As a consequence of this attack all stolen tokens will be returned and also the user will need to manage their private keys by themselves.

Author: article_bot
*This article only represents the views of observers and does not constitute any investment advice.
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