• Someone hacked vanity addresses to steal $500K worth of tokens during the Arbitrum airdrop on March 23
• A tweet explained that the stolen tokens were directed to newly generated vanity addresses instead of their original owners
• 61% of eligible crypto wallets have already claimed governance tokens, with 428 million ARB still remaining unclaimed
Hacked Vanity Addresses Loot $500K
According to recent on-chain data, someone managed to steal $500K worth of tokens by hacking vanity addresses during the layer-2 scaling solution Arbitrum airdrop scheduled on March 23. The individual had first compiled a list of vanity addresses eligible for ARB airdrops and then generated similar addresses using vanity address generators. This redirected the airdropped tokens to the newly developed addresses instead. Consequently, the original owners of the ARB tokens are no longer able to claim them.
Controversies Surrounding Airdrop
The theft has caused several cryptocurrency users to take to Twitter in order express their dismay. Most affected individuals need more knowledge on the cause of loss in order to respond appropriately. Moreover, Arbitrum’s token giveaway hosted by Arbitrum generated buzzes and swamped several other websites, yet Nansen reports that there are still 428 million ARB tokens that remain unclaimed. These represent 37% of the 1.1 billion ARB allotted for Arbitrum’s airdrop and are valued at around $596 million.
What Are Vanity Addresses?
This is not the first time fraudsters have used hacked vanity addresses in cryptocurrencies; MetaMask sent out a warning concerning address poisoning back in January this year. A vanity address is an unique crypto address incorporating a user’s chosen phrase or word which makes it easier for them to remember and manage their funds without needing any external assistance or software tools.
Consequences Of Theft
The consequences stemming from this theft can be severe since many cryptocurrency users have been left unable to recover their lost funds due to lack of appropriate knowledge about what happened and how best they should respond accordingly . Additionally, as more people continue claiming their unclaimed coins from Arbitrum’s token giveaway, those who had theirs stolen may not receive any compensation since it was done through an illegal means before they even got theirs .
In conclusion , it is important for everyone involved in cryptocurrency transactions such as air drops and other activities involving virtual assets ,to employ extra security measures when dealing with digital assets .This includes being aware of possible risks such as hacking ,address poisoning and so forth when generating or using wallet addresses containing private information .It also helps if you use third party services such as MetaMask when necessary ,to keep your funds safe from malicious attacks