Earlier today, CertiK made a post on X stating that OlaXBT ($AIO) has lost around 32 million AIO tokens, which is worth over $2 million, to a hacker who breached the project’s multisignature wallets.
CertiK reported that they were alerted to the suspicious movements on Aio’s wallets and warned that the funds were transferred out of the multisignature wallets to 0xec7…348c.
After only a short time, the hacker began selling the stolen tokens and executing panic sells on AIO Payment holders in the market.
This hack demonstrates that, despite the notion that multisig wallets are more secure because they require multiple approvals before a transaction can occur, the flaws in that idea are becoming more prevalent.
Hack Breakdown Reveals Coordinated Draining
Blockchain data indicates that the hack occurred through a series of rapid, coordinated transactions.
The hacker made many transfers within a single hour window. Large amounts of AIO tokens were transferred to the hacker wallet, including a transfer of 6.25 million AIO, as well as 5.86 million, 57.83 million, and 6.72 million.
The speed and volume of these transactions indicate that the hacker either exploited a flaw in OlaXBT’s wallet management and security protocols to completely sidestep any security measures preventing withdrawals or they are using advanced techniques to divert assets to their designated recipient.
Analysts are quick to point out that the speed and volume of transfers may indicate issues inside the organization itself.
Also Read: ZkLend Suffers $10M Hack, Offers Attacker 10% Bounty For Fund Return Amid Ongoing Crypto Hacks
Market Impact: AIO Token Drops Over 16% in 24 Hours
OlaXBT has experienced the immediate fallout of the attack and has been severely impacted in the market. The AIO token is currently trading at $0.07391, down 16.13% in the last 24 hours. The token has also seen a 7.39% decrease in the last week.
The current circulating supply is 230 million tokens, resulting in a market cap of $16.9 million for OlaXBT.
The decline demonstrates shaken investor confidence, especially given the $18.4 million trading volume in the same time period, driven mostly by panic selling and uncertainty related to the project’s capability to recover from the attack.
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Wider Crypto Security Concerns Amplified by Rising Hacks
This hack adds to a disturbing trend of growing scams involving crypto-related security breaches.
A report released earlier today from Uncrypto highlighted that total loss due to crypto hacks amounted to $163 million in August, a 15% rise compared to July.
Noteworthy is the number of exploits involving BTCTurk and other individual holders of Bitcoin, while DeFi platforms remained a major target as usual.
The OlaXBT hack will add to these growing numbers and further compromise the already diminishing confidence of investors regarding blockchain security during a precarious time when many investors are already nervous about the wider market.