Crypto Music Service Audius Hacked; Reports $1.08 Million Loss

Key Points:

  • Crypto music service Audius was hacked on 24 July, with the hacker running away with $1 million.
  • The cybercriminal successfully siphoned funds from the community treasury by assigning himself as the only guardian of a governance contract. 
  • Post the attack, Audius reinstated the AUDIO token and smart contract functionality. 

Crypto music service Audius saw one of the darkest days since its inception after a malicious hacker siphoned $6 million from the community treasury. The perpetrator created a spiteful proposal that requested the transfer of around 18 million AUDIO tokens from the community treasury. It appears that this was approved by the Audius community. 

According to a Twitter user, the hacker assigned himself as the only guardian of the contract by naming the smart contract function “initialize()”. Soon after the service was hacked, Audius paused AUDIO tokens and smart contracts to ensure a further loss of funds. As things stand, both the functionalities are up and running again. Audius has also confirmed that the funds in the foundation and community treasury are safe. 

Audius is expected to release a full statement after it gets to the bottom of the issue this week. 

SEE ALSO: Cryptocurrency Lending Firm Celsius Halts User Withdrawals

Slippage in AUDIO price after hacker shenanigans 

The hacker swept away around 18 million tokens worth $6 million and sold them for $1.08 million on the decentralized exchange Uniswap. This has caused slippage in AUDIO token price. Are you wondering what slippage means?

Slippage is essentially the difference between the expected price of a token and the price at the time of order execution. It can be expressed in terms of a dollar amount or percentage. One investor even hinted toward a buyback to block a selloff which would further drop the price. Another investor was more stern, giving Audius an ultimatum; recover or they are out. 

So what went wrong? Peckshield, a blockchain security company said that inconsistency in the storage layout could be the epicenter of the issue, which Audius has now fixed. 

Is Audius cutting out labels?

Audius was primarily established to connect fans to their music artists without an intermediary. In this case, a label. It was conceptualized to become a blockchain version of SoundCloud. On Audius, artists can create immutable audio tracks that can be streamed free of charge. In addition, artists have complete control over how they wish to monetize what they produce and receive 90% of the revenue. The remainder 10% is distributed to node operators. 

What are your thoughts on this entire subject? Leave your comments below and let us know. 

SEE ALSO: Crypto exchange Coinbase rolls out new social NFT marketplace

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Karandeep V

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency. At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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