Decentralized music platform, Audius found a total of 18.5 million of its utility tokens, AUDIO, 'leaked' from their Community Treasury.
The matter was reported by Audius itself via Twitter on July 24.
It is understood that the incident started when a hacker (hacker) requested a proposal (proposal) for the transfer of 18 million AUDIOs which was supposedly approved by the Audius community.
Citing a Twitter source, the hacker declared himself the sole custodian of the contract by calling the smart contract function "initialize()".
https://t.co/q4vXlXYVzm This is the transaction that created the malicious proposal. It seems like the attacker was able to call initialize() and set himself as the sole guardian of the governance contract pic.twitter.com/S0x7JeFO8y
— Spreek (@spreekaway) July 24, 2022
According to another source, as many as 18.5 million AUDIOs were lost when the hacker converted the funds through the Uniswap crypto exchange to 705 Ethereum (ETH).
The @AudiusProject community treasury was recently exploited, leading to the loss of ~18.5M $Audio.
The funds were swapped via @Uniswap for ~705 $ETH and remain in the scammers address at this time.
0xa0c7BD318D69424603CBf91e9969870F21B8ab4chttps://t.co/OxG5KL65be pic.twitter.com/hxxWBxIma6
— MistTrack🕵️ (@MistTrack_io) July 24, 2022
Upon becoming aware of the incident, Audius immediately took remedial measures by limiting all of its smart contracts on the ETH network, including token balances and transfers to reduce risk.
The string of incidents has also reduced the value of AUDIO to a level as low as $0.32 cents per day.
As a context, secret transaction protocol or mixer is often used by cyber criminals because it will confuse the source of funds.
Chainalysis sources stated that the crypto mixer reached its all-time high usage in 2022 when 10% of the funds were sent from illegal addresses.
