Crypto Gaming Ecosystem Vulcan Forged Hacked for $140M.

Crypto Gaming Ecosystem Vulcan Forged Hacked for $140M.
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Vulcan Forged, a cryptocurrency gaming ecosystem, was recently hacked and lost nearly $140 million worth of crypto assets. The attackers accessed the keys of 96 wallets and stole almost 23 per cent of the existing token supply of the project.

https://twitter.com/VulcanForged/status/1470201106626224140

The CEO of Vulcan Forged, Jaime Thomson, acknowledged the hack in a video message on Twitter and assured using decentralized wallets. It means that the users themselves can handle their wallet keys.

About Vulcan Forged:

Vulcan Forged is an open-world and blockchain-based multiplayer online role-playing game. Players can own non-fungible tokens through VulcanVerse. The players can win Vulcanites, Gods and Land in the game, and these can be exchanged in the marketplace. VulcanVerse allows its users to create their quests where they can battle against other Vulcanites.

$PYR is the unique token of VulcanVerse, which is used for staking and settlement.

How did the attack happen?

Vulcan uses the Venly wallet solutions. Note that Venly is a semi-custodial wallet solution that claims to be a trustworthy partner for any blockchain project. The Venly wallets were not directly affected in the recent hack, but the Vulcan server was hacked. 

The attacker exploited the Vulcan server to get the Venly credentials. These credentials were used to extract the private keys of the Vulcan users. The stolen assets include PYR, Ether and Polygon.

Soon after the attack, the Vulcan Forged team found out the address of the wallet responsible for the hack and got it blacklisted from all the exchanges. They also asked the affected Vulcan wallets to provide the metamask address in order to replace the PYR and LAVA from their treasury.

The Vulcan team immediately asked the community members to pull out the funds from the liquidity pools soon after the attack. Still, the hacker managed to sell some PYR for ETH.

The effect of the attack can easily be seen on the price of the PYR token, i.e., the market price of Vulcan Forged (PYR) facing a massive decline after the news of the hack came out. It is currently priced at $20.13, according to coinmarketcap.

What measures were taken by the Vulcan Forged after the hack?

  • The majority of the stolen PYR is refunded to the users' wallets from the treasury.
  • The team focused on the development of the network and decided to opt for a decentralized solution.
  • Infrastructure and the marketplace will be shifted to decentralized wallets.
  • The team has isolated the stolen tokens for all the centralized exchanges and is working to identify the footprints.