Hacker exploits 'Audacious' for $1 million in malicious governance proposal
Categories: Crypto News US
Hacker exploits 'Audacious' for $1 million in malicious governance proposal
Decentralized music streaming platform Audius has announced that it suffered a loss of approximately US$1 million from an unknown hacker as of early July 24. The hacker was able to transfer 18 million audio tokens from the community treasury, an action approved by the Audacious community, then calling the assigned smart contract function "(initialize)" with himself as the sole custodian of the contract.
Once the platform detected that attack, it initially halted smart contracts and audio tokens to prevent further loss of funds, but soon resumed smart contract functionality. The fund is now said to be safe in both the community and the foundation's coffers.The attacker sold the coin on decentralized exchange Uniswap for $1.08 million, causing the audio price to drop. Slippage refers to the difference between the expected price of a token and the price when the order is executed, and is expressed as a percentage of the dollar amount.
Audius designed to cut out the middleman
Audacious was founded to connect music fans with artists, without the need for an intermediary such as a record label.Initially designed to be the blockchain version of SoundCloud, it is a place where artists can create irresistible songs that fans can listen to for free. The platform gives artists the freedom to choose how they monetize their work and ensures that the artists receive 90 percent of the revenue collected. The remaining 10 per cent is released to the node operators.
Audacious has become so popular that popular music artists such as Katy Perry, Steve Aoki and the Chainsmokers have invested in crypto-powered streaming platforms. Audacious now has over six million monthly active users and is a community-owned and operated protocol. The platform recently introduced audio tipping, enabling fans to pay their favorite artists using native audio tokens.