Lympo (LMT) loses 80% of its value after $18m hacker theft

By Raffaele Redi
• Updated

The platform is investigating the incident.

Computer security breach concept, showing unlocked red padlocks                                 
The majority of the LMT reserve sits in cold wallet storage and remained secure and uncompromised throughout the incident, according to Lympo – Photo: Shutterstock
                                

Lympo (LMT) lost around 80% of its value after hackers managed to gain access to Lympo’s hot wallet, stealing LMT165.2 million or around $18m (£13m).

At the time of the incident, on the crypto market, LMT tokens were in fact worth over $0.1 while the current figure, at the time of writing (14:30 GMT), stands at around $0.02, meaning that the loss would have been around $4.3m if calculated with LMT current value.

The NFT platform for sports collectables immediately reported the incident as it happened at approximately 2:32pm (UTC +2) on 10 January 2022.

According to the platform, powered by Animoca Brands, the hackers managed to gain access to Lympo’s operational hot wallet and stole a total of approximately LMT162.2 million from it.

In the aftermath, the same platform, which reported the address of the compromised wallets, asked its users not to operate any transaction related to LMT, however when LMT trade restarted, the effort of the community wasn’t enough to cover losses.

At the time of writing, LMT coin, despite a 136% increase in its price in the last 24 hours, was trading at $0.02614 with a market cap of around $801,000 and a trading volume of around $7.3m. This is far from the record witnessed a few days before the incident, when LMT price reached the $0.15 level.

Lympo response

In response to the attack, Lympo said it has enacted safeguards “to ensure that no additional LMT could be stolen by the hackers”. The company said the attack is still being investigated.

“We are temporarily removing LMT from various liquidity pools in order to minimize disruption to token prices following the hack,” said the company in a statement.

“Note that the majority of the LMT reserve sits in cold wallet storage and has remained secure and uncompromised throughout the incident. We assure all LMT token holders that we are working hard to resume normal operations as soon as possible. We are preparing a comprehensive plan on how the effects of this attack will be remediated and will share it with our community as soon as it’s available,” Lympo added.

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