Gaming project Vulcan Forged loses $140 million from customers’ private keys

Highly thought of blockchain gaming start-up Vulcan Forged has suffered the loss of $140 million in customer funds from the private keys that were being managed on their behalf by the platform. According to the gaming ecosystem platform, all funds will be reimbursed.

Earlier today, 96 customer private keys were compromised on the Vulcan Forged gaming platform. It seems that around 24% of the entire circulating supply of the PYR token was stolen in the attack. Other crypto assets such as Polygon (MATIC), and Ethereum (ETH) are also believed to have been taken.

According to the Vulcan Forged team, all tokens that were stolen will be replaced by the end of today. Meanwhile, the attacker has managed to sell quite a large amount of the PYR tokens into ETH, although there is still around $47 million worth of PYR still sitting in one wallet that has so far remained untouched.

The Vulcan Forged team has also asked all affected customers to set up Metamask accounts so that the exact amount of PYR and LAVA tokens which were stolen can be replaced. Those who lost MATIC or ETH will be reimbursed in PYR tokens.

Following the attack, the price of the PYR token dropped to as low as  $20.60 from a starting price for the day of $29.62. It has now stabilised to just under $23, perhaps due to the quick action of the Vulcan Forged team.

After this experience, the team has said that it will no longer custody customer private keys, and will be changing all its infrastructure over to decentralised wallets.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.