AirDAO Hacked: Stolen Funds Moved to MEXC, KuCoin, ChangeNOW

AirDAO encountered a significant theft. Hackers managed to extract 126.5 Ethereum (ETH) and 41.61 million AMB tokens. This incident marks a substantial setback for the blockchain platform, emphasizing vulnerabilities within digital asset security protocols.

Incident Overview

On March 21, AirDAO took to X, a social media platform, to announce the unauthorized access and subsequent theft from its AMB/ETH Uniswap liquidity pool. The theft resulted in the loss of 35.2 million AMB tokens along with 125.51 ETH. The attack method remains unclear, yet AirDAO identified it as a sophisticated social engineering scheme. The attacker purportedly sent an email laden with malicious attachments, feigning identity as a familiar partner to AirDAO.

To mitigate the aftermath and recover the stolen assets, AirDAO has proposed a 10% white hat fee to the hacker for the return of the funds, valued at nearly $870,000. This move seeks prompt restitution. However, the team stands ready to engage law enforcement should these efforts falter. Collaborations with exchanges and regulatory bodies are underway to track down the perpetrator and recover the assets.

Tracking the Stolen Assets

PeckShield, a blockchain security company, tracked the illicitly acquired funds to several centralized exchanges, including MEXC, KuCoin, and ChangeNOW. SlowMist, another analytics firm, reported that parts of the assets found their way to Binance and BitMart. These exchanges have yet to comment on the situation.

Established in 2022, AirDAO is at the forefront of the Web3 revolution. It operates AMB-NET, a blockchain network, and leverages its native token, AMB, to power a suite of decentralized applications. This incident brings to light the ongoing challenges facing blockchain security and the imperative of robust defenses against digital fraud.