Social Token Platform 'Roll' Suffers Major Hot Wallet Hack - Exclusive.

Social Token Platform 'Roll' Suffers Major Hot Wallet Hack - Exclusive.

2021-03-16 | Eddy Morgan

Social Token Platform 'Roll' Suffers Major Hot Wallet Hack - Exclusive.

Renowned social token platform Roll suffered a hot wallet hack, leading to hackers draining around 3,000 ETH worth $5.7 Mln, earlier on 15th March. At roughly 8am UTC, crypto asset management platform MyCrypto revealed that a hacker might have compromised the private keys for Roll’s hot wallet, permitting them to transfer funds from users’ accounts at will. After around 12 hours, Roll announced that the hacker had stolen and liquidated an outsized number of tokens, after which withdrawals had been suspended across the platform:
“The attacker has sold all the tokens. There's no further user action suggested.”
Roll added that it had launched a $500k fund to “help creators and their communities" suffering from the incident. The attacker stole 11 different social tokens, including $WHALE, $RARE, and $PICA. The stolen funds were then transferred to Tornado Cash, a privacy tool often employed by hackers to launder stolen funds. The hacker then traded the tokens for Ethereum on the Uniswap exchange. Markets for the tokens stolen within the breach began to dump within hours of the attack, quickly accumulating losses of over 90%. A number of the worst-hit along with $PICA, $WHALE, and $FWB, who plummetted 99.6%, 99.3%, and 92.35% respectively. As a results of the attack, the market capitalization of social tokens on the platform fell from $1.5 Bln as of 12th March to $365 Mln as at the reporting time. With solely 2.17% of its supply compromised, $WHALE was one among the sole tokens to quickly recover, trading above $30 USD at the time of reporting. A social token is an ERC-20 token users can create on platforms like appear order to interact with their community or sell assets. Roll’s reaction to the breach has gathered mixed reactions on Twitter, with the $500k fund receiving particular attention. Twitter user “LoB” revealed: “$10 Mln in a hot wallet without the multisig that you simply promised creators was in situ, 12 hours to form a response to the incident, and $500k to be split across a dozen projects? Yikes.”

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