Roll Gets Hacked, Intruder Absonding With 3,000 ETH Worth $5.7 Million. As hot wallets are deemed to be vulnerable, a social token platform got to bear the brunt of the same.
It all happened after the intruder happened to gain access to the private keys of the hot wallet. On March 15, the breach got the hackers to drain at least 3,000 ETH worth $5.7 million.
On March 15, Roll announced the news on Twitter saying:
Around 3:30am EST today, there was a security incident with Roll’s hot wallet. As a result, the attacker was able to steal all the tokens from this wallet and sell on Uniswap for ETH. It seems like a compromise of the private keys of our hot wallet and not a bug in the Roll smart contracts or any token contracts.
Earlier today, the private keys to our hot wallet were compromised. We're investigating this with our infrastructure provider, security engineers and law enforcement. Additionally, we're putting together a $500,000 fund for creators affected by this. https://t.co/fQ2QbFgVAT pic.twitter.com/93pfyRGhi2 — Roll (@tryrollhq) March 14, 2021
Further probe and investigation are going on. Roll also announced temporarily disabling withdrawal of all social money from the Roll wallet until the migration of the hot wallet.
Social tokens are created by individuals including artists, content creators, for their followers, who wishes to buy art or souvenir of their loved artists.
According to Coingeko’s social token tracker, most of the tokens got dumped due to the attack. WHALE with a market cap of $155 million, tanked by 25%, MORK by 72%, FWB by 96%, along with others.
<img class="lazyload" src="https://cdn.shortpixel.ai/spai/w_763+q_lossless+ret_img+to_webp/https://cryptopotato.com/wp-content/uploads/2021/03/socialtokendump.jpg" alt="" />
Source: cdn.shortpixel.ai
Roll was quite disheartened with the incident. It said:
It is hard to put into words how devastating this is and we are really sorry about what happened. We take security very seriously and strive to earn the trust of our creators and communities with their social money but today we messed up.
They assured the customers to do a third-party audit of the security infrastructure. They also announced running a forensic analysis. As a matter of providing compensation to its community, Roll said:
We are announcing a $500,000 fund to help the creators and their communities affected by this. We will reach out to every community one by one in coming days and will give more details soon.
Source: Cointelegraph| cryptopotato.com | Image: techcrunch.com