Web 3 Streaming Platform Audius Hacked, $6M Stolen

A malicious actor siphoned $6 million from music platform Audius via the platform’s decentralized governance system.

The hacker created a malicious proposal requesting the switch of 18 million AUDIO tokens from the group treasury, an motion supposedly accredited by the Audius group. He assigned himself as the only real guardian of the contract by calling the sensible contract perform “initialize(),” based on Twitter person @spreekaway.

Audius initially paused sensible contracts and AUDIO tokens to forestall additional lack of funds from the group treasury, resuming sensible contract performance quickly after. Funds in the neighborhood treasury and the inspiration treasury are each secure.

The corporate mentioned it might doubtless launch a full autopsy tomorrow.

Hacker causes slippage in AUDIO worth

After stealing 18 million tokens for $6 million, the hacker offered them for $1.08 million on decentralized trade Uniswap, inflicting a slippage within the AUDIO token worth. Slippage is the distinction between the anticipated worth of a token and the value when the order executes and may be expressed as a proportion or a greenback quantity. One investor instructed a buyback to forestall a selloff that might drive the value down additional. One other investor gave Audius an ultimatum: get better, else they’re out.

An preliminary investigation by blockchain safety firm Peckshield pointed to an inconsistent storage structure as the basis reason for the issue, which Audius had fastened by press time. The exploit is not potential.

Audius slicing out labels

Audius was based to attach music artists to followers with out an middleman like a label. Initially designed to be a blockchain model of SoundCloud, Audius is the place artists can produce immutable tracks that followers can hearken to freed from cost. Artists have freedom with how they monetize their work and obtain 90% of income. The remaining 10% is distributed to node operators.

Audius just lately launched a service enabling holders of the AUDIO governance token to tip their favourite artists on the platform, permitting the artists to react with emojis. The AUDIO token is an ERC-20 token that lives on Ethereum however has a bridge to Solana to enhance transaction pace and decrease prices.

Additionally it is one of many first streaming platforms to companion with short-form video-hosting service TikTok, permitting customers of the platform to include Audius content material into their movies.

Audius got here below criticism for internet hosting copyrighted content material on its platform that it couldn’t take away.

At press time, AUDIO had recovered to $0.34.

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