Social token platform Roll has suffered a hack attack leading to the loss of tokens worth about $5.7 million.
March 16, 2021 | AtoZ Markets – The hot wallet of the social token platform Roll has been hacked. The cyber attacker stole at least 3,000 Ether, valued at $5.7 million.
The digital asset management platform MyCrypto reported in their March 14 post that a cyber attacker may have compromised the private keys of Roll’s hot wallet and transferred funds from user accounts.
Roll made a statement about the attack about 12 hours later and stated that the cyber attacker stole a large amount of tokens and converted them into cash, therefore, withdrawals on the platform were suspended:
“The cyber attacker stole all the tokens. Users are not required to do anything.”
Roll added that it has launched a $500K fund to help token creators and communities affected by the incident.
Value of Social Tokens Decreased on Roll’s Hack Attack
The hacker stole 11 different social tokens, including WHALE, RARE, and PICA. Stolen tokens were transferred to Tornado Cash, a privacy tool often used by cyber attackers to launder money. The cyber attacker later received Ether in exchange for these tokens on the popular decentralized exchange Uniswap.
The price of tokens stolen in the cyber attack took a big hit. PICA lost 99.6%, WHALE 99.3%, and FWB fell 92.35%.
As a result of the hack attack, the market value of social tokens on the platform, which was $1.5 billion on March 12, decreased to $365 million as of the time of translation broadcast.
With only 2.17% of its supply stolen, WHALE became one of the fastest-recovering tokens, with translation surpassing $30 at the time of release.
Social tokens are ERC-20 tokens that users can create on platforms like Roll to interact with their community or sell their assets.
Roll’s response to the cyberattack, especially the $500,000 worth of the fund they created, drew backlash.
Earlier today, the private keys to our hot wallet were compromised.— Roll (@tryrollhq) March 14, 2021
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
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