In the midst of a blistering $2 trillion crypto crash that has roiled the blockchain industry, the world’s leading blockchain-based streaming platform has sustained a seven-figure attack.
In a malicious exploit that used the platform’s built-in governance structure as a means to withdraw tokens, Audius reportedly sustained a hack which saw the perpetrator make a speedy exit with over $1 million.
According to Cointelegraph, the hacker was able to solely request the transfer of 18 million $AUDIO tokens by establishing themselves as the singular guardian of the contract, known as “Proposal #85.” The 18 million tokens were originally worth $6 million at the time, but due to the hacker’s move to hastily dump the reserves on the open market simultaneously, the resulting collapse in price enabled them to net just over $1 million from the exchange.
Audius took to Twitter to announce an internal investigation into the matter, which they deemed “an unauthorized transfer of AUDIO tokens from the community treasury.”
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CEO Roneil Rumburg clarified that while the funds were stolen from the community treasury, the perpetrator’s proposal was not voted on or approved by users of Audius, a decentralized platform.
“This was an exploit—not a proposal proposed or passed through any legitimate means—it just happened to use the governance system as the entry point for the attack,” Rumberg told Cointelegraph.
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Tagged: Audius, Blockchain, crypto, cryptocurrency, entertainment blog, GEAR + TECH, Hacked, music blog