In summary
- An attacker escaped with $ 5.7 million in encryption.
- They channeled funds from a Roll portfolio to Tornado
- Roll Rally competitors have seen their native token rise in price today.
Editor’s note: this article has been updated with Roll’s response.
It’s a terrible day for crypto influencers on the Roll social money platform.
A hack in the early hours of the morning UTC sank the value of several social tokens coined and distributed on the platform – including WHALE, RARE and PICA – by more than 50% of the price, as an attacker escaped with almost 3000 ETH, or about $ 5.7 million.
At 8:16 UTC, MyCrypto.com tweeted that “there was some kind of widespread hack / compromise in various social currencies, leading to massive eviction”.
WHALE, a social currency supported by NFT active, confirmed the hack an hour later, tweeting that “2.17% of $ WHALE was compromised by means of a hack in the hot wallet of the issuer of our social token. ”In a follow-up tweet, WHALE announced that it has kept the rest of its tokens in refrigerated storage.
In response, Roll has suspended withdrawals of social money from their Roll portfolios and created a $ 500,000 fund to help farmers and affected communities.
What happened?
It looks like a robbery.Etherscan shows that hundreds of ETH have been transferred to Tornado Cash, a privacy tool often used by hackers to cover their tracks.
Roll said today that the attack was the result of a compromised Roll wallet.
Igor Igamberdiev, analyst at The block, said the attacker forced the victims to approve the transfer of all his tokens.
With the security of the wallet compromised, the attacker sold his stolen social tokens and channeled the profits to a hidden destination.
Roll did not say how private keys were compromised, but said in a statement that “I am really sorry”.
“Today we make mistakes,” he added.
Social tokens?
Social tokens are ERC-20 tokens coined by aspiring crypto socialites.
Through symbolic sales to loyal fans, these influencers can generate income while offering their supporters a tailored currency.
Coins are far from useless. Holders can redeem them for goods and services, like voting for their favorite socialite’s life or making career decisions (token holders forced Alex Masmej to run 5,000 every day for a month) or exchange them with other cryptocurrencies .
There are some social money platforms – and anyone can create a social token on Ethereum– but Roll, the creation of the former Coindesk analyst Bradley Miles was the first to set up a complete social encryption store. In the summer of last year, Roll had launched about 160 different social tokens.
Brooklyn 99 actor Terry Crews made headlines earlier this week when launched its own $ POWER token on Roll.
In response to the incident, Roll said he is strengthening his infrastructure, having his code audited and working with the police.
CEO Bradley Miles added: “Our goal is to get back stronger than ever.”
MMeanwhile, Roll’s competitor, Rally, had a really good day. The price of his RLY token went up by more than fifteen percent, just as Roll’s tokens were staggering.