In recent years, the number of hacks targeting crypto-related platforms has increased dramatically. Vulcan Forged, a crypto-gaming environment, was infected with malware, resulting in the loss of $140 million (approximately Rs. 1,062 crores) in customer crypto assets. According to reports, hackers gained complete control of 96 wallets, taking 23.7 percent of the project’s circulating token supply. The key to these cryptocurrency wallets, which are built on the Ethereum, Polygon, and VeChain blockchains, is administered by the gaming ecosystem.
Vulcan Forged’s CEO, Jaime Thomson, acknowledged the breach in a video statement on Twitter, calling December 13 the “darkest day in Vulcan Forged history.”
“Venly is a semi-custodial wallet solution that we employ. Venly is a service that, as far as we know, is working properly but has not been hijacked. Someone has taken advantage of our systems, obtained the Venly credentials, and utilised them to obtain the Forged users’ private keys. Of course, moving ahead, we’ll only use decentralised wallets so we never have to deal with this problem again,” Thomson said, adding that the firm is using its treasury to repay victims of the cyber assault.
Thomson essentially stated that the firm now will let customers manage their personal wallet keys instead of storing them on its systems.
The attackers took Ether, Polygon, and Vulcan Forged’s native PYR cryptocurrency, which has since dropped in value and is currently selling at $20 (approximately Rs. 1,517 per token) on CoinMarketCap.
Vulcan Forged has encouraged its concerned citizens to withdraw assets from liquidity pools on decentralized exchanges to make it more difficult for the hacker to pay out the stolen monies. On the other side, the cyber-criminal was able to sell small amounts of PYR in return for Ether.
According to a report by The Block Crypto, a hacker presently has control of a compromised wallet with $2 million in PYR (about Rs. 15 crores). To get their compensation, the business has requested impacted individuals to create accounts with MetaMask.
According to market research tracker CoinGecko, the crypto sector is now experiencing a global surge, with the whole market valuation surpassing $3 trillion (approximately Rs. 2,22,79,296 crore). In October, a huge cyberattack cost the Ethereum-based lending protocol “Cream Finance” $130 million (about Rs. 972 crores) in cryptocurrency assets.
According to recent research, cryptocurrency-related crimes would cost over $10.52 billion in 2020. (roughly Rs. 79,194 crore).
In November, the United States Federal Bureau of Investigation (FBI) warned that cybercriminals are duping people into utilizing physical bitcoin ATMs and digital QR codes to carry out unlawful transactions and steal their money.