Crypto music service Audius hacked; Estimated loss $1.08M
Crypto music platform Audius came under attack in the form of a malicious governance proposal that siphoned off over $6.1 million worth of AUDIO tokens, with the hacker taking away $1 million dollars.
On July 24, a malicious proposal initiated an unauthorized transfer of 18 million AUDIO tokens from the community treasury.
Following the incident, Audius suspended all smart contracts and AUDIO tokens on the Ethereum blockchain to mitigate further losses.
A few hours later, it resumed token transfers, to add that “remaining smart contract functionality is restored after further investigation/vulnerability mitigation”.
Peckshield, blockchain researcher Underline the project’s inconsistent storage layout as the root cause.
As the attacker stole 18 million tokens worth nearly $6 million from the Treasury, it quickly sold and sold for $1.08 million. Investors feared this would trigger a panic sell and recommended an immediate buyback to prevent a further drop in the token’s floor price.
Audius recently introduced a feature to tip artists
Music platform Web3 has launched a tipping feature allowing creators to monetize their content by allowing listeners to tip artists, the startup announced on July 19.
Audius is an Ethereum and Solana-based streaming service aiming to compete with giants such as Spotify and Apple Music by decentralizing and democratizing the growing industry.
He claims he directs the majority of music revenue to artists [roughly 90%]. The startup was founded by Roneil Rumburg and Forrest Browning, two electronic music enthusiasts, in 2018.
Initially launched on the Ethereum blockchain, the blockchain music platform later moved part of its service to the Solana blockchain in an effort to reduce fees and increase performance.
In addition to this, Staked AUDIO tokens are used to vote on governance proposals for implementing network upgrades.
Last September, the crypto streaming platform announced a $5 million investment round funded by stellar celebrities such as pop star Katy Perry, The Chainsmokers, Linkin Park’s Mike Shinoda and other heavyweights of the music industry.
The platform also entered into a high-profile partnership with video-sharing app TikTok in 2021.