Lympo, an NFT platform specializing in the minting of sports-related memorabilia, a subsidiary of Animoca Brands, has lost $18 million due to a breach of many of its hot wallets.
According to a Medium article announcing the security incident, the company lost 165.2 million LMT tokens when a hacker got access to its subsidiary Lympo’s main operating wallet. The hack also affected ten projects that collaborate with Lympo, according to the report.
After that, the hacker exchanged the stolen tokens for ETH on Sushiswap and Uniswap before sending them to an unnamed wallet, presumably after mixing them in a cryptocurrency tumbler.
LMT Price drops after after the hack
Following the news, LMT dropped 92% of its value, plunging to $0.0093 once it was discovered that the tokens had been hacked. On January 11, the team issued a follow-up tweet to its community, claiming that they were working to stabilize the platform so that operations may continue.
They also stated that LMT has been withdrawn from liquidity pools as a preventative action in order to avoid unnecessarily disrupting the token’s price. Large volume orders placed by traders will not be filled swiftly as a result of the suspension of its liquidity pool, and such orders will result in considerable losses for the trader. This meant that if the order is large enough, it’s advisable to halt trading on assets with limited liquidity.
Lympo provides an update on the LMT token slippage and hacking that occurred on January 10th at approximately 12:32 pm UTC. We’re working on stabilizing the situation and resuming all operations back to normal.
The Lympo team recommended traders stop trading the LMT token until they determine the best course of action after examining the reason for the security compromise on the wallet, according to an announcement made on January 11.
Following the breach, Animoca, Lympo’s parent company, indicated that it will provide Lympo with the necessary support to allow the NFT platform to overcome the problems connected with the assault. Yat Siu, the CEO of Animoca, said in a press release:
“We are working with Lympo to assist them on a recovery plan, but we don’t have any specific mechanisms.”
