NFT music platform Audius loses 18 million cryptocurrency to scammer

NFT music platform Audius loses 18 million cryptocurrencies due to fraudster

NFT Music Platform Audius has confirmed that it has been exploited by cybercriminals, costing the crypto company approximately $6 million. Audius is a music streaming and sharing platform that puts the power back in the hands of content creators, making it a decentralized platform.

The platform allows listeners to support artists directly through its native AUDIO cryptocurrency. As of December 2021, Audius has nearly 6 million monthly unique users and hosts over 100,000 artists.

According to MisTrack, a cryptocurrency compliance platform, Audius was recently exploited, resulting in the loss of 18.5 million audio tokens. It appears that $6 million in audio tokens was exchanged for just over $1 million in Ethereum. Funds were exchanged via Uniswap for 705 ETH and remain at the scammer’s address at this time. Uniswap is a decentralized cryptocurrency exchange.

“Our team is aware of reports of unauthorized transfer of AUDIO tokens from the community treasury. We are actively investigating and will report back as soon as we know more,” Audius said in a tweet. “The issue has been found and repairs are underway to bring things back to a stable state. To prevent further damage, all Audius smart contracts on Ethereum, including the token, had to be stopped. We do not believe any additional funding is at risk.”

Notably, the fraudster’s cryptocurrency wallet transaction history reveals that they previously received crypto tokens through Tornado Cash, a private cryptocurrency mixer. This protocol is usually used to transfer cryptocurrency and offers full anonymity.

It should be noted that the rise of DeFi, which facilitates cryptocurrency lending outside of traditional banking, has been a big factor in the increase in stolen funds and fraud. Hackers have targeted DeFis the most, which is another warning for those dabbling in this emerging segment of the crypto industry.

“DeFi is one of the most exciting areas of the broader cryptocurrency ecosystem and represents huge opportunities for both entrepreneurs and cryptocurrency users,” Chainalysis wrote in its annual Crypto Crime report.

Sanjit
Sanjit

I am Sanjit Gupta. I have completed my BMS then MMS both in marketing. I even did a diploma in computer software and Digital Marketing.

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