• Hackers looted $500K worth of tokens during the layer-2 scaling solution Arbitrum airdrop.
• They managed to generate similar addresses using vanity address generators and so the original owners of the ARB tokens will no longer be able to claim them.
• 428 million ARB tokens still need to be claimed and the value of these tokens is close to $596 million.
Hacked Vanity Addresses Loot $500k
Recent on-chain data has shown that hacked vanity addresses have been used in looting $500K worth of tokens during the layer-2 scaling solution Arbitrum airdrop scheduled on March 23rd. An individual compiled a list of vanity addresses qualified for ARB airdrops and then managed to generate similar addresses using vanity address generators, directing the airdropped tokens to these newly developed addresses instead – leaving original owners unable to claim their ARB tokens.
Controversies Surrounding Airdrop
Many cryptocurrency users have taken to Twitter to express their dismay following the theft of their ARB tokens, with many not knowing how best respond appropriately or what caused this loss in the first place. Kucoin was also contacted by one user asking for help in recovering stolen coins, however no response has been made yet as far as we know.
The blockchain analytics tool Nansen reports that there are currently 428 million ARB tokens that still need to be claimed, with 61% of eligible crypto wallets having already done so as of late March 22nd – leaving around 240,000 unclaimed addresses. This represents 37% (1.1 billion) out of all allotted 1.1 billion ARB for Arbitrum’s token giveaway – valued at around $596 million USD at current prices.
What Are Vanity Addresses?
Vanity addresses are unique crypto wallet address incorporating a user’s chosen phrase or word and were previously used in MetaMask fraud cases back in January 2021 where users were sent warnings about ‘address poisoning’ scams which targeted MetaMask users specifically at that time – showing us how easy it can be for hackers to access our crypto assets if we don’t take proper safety measures when dealing with our digital assets online such as wallets and exchanges etc..
This case shows us once again just how important it is that we always remain vigilant when transacting online with digital assets such as cryptocurrencies, by taking necessary precautions such as double checking wallet address before sending/receiving funds etc., making sure you understand all terms & conditions prior engaging in any activity related cryptocurrency transactions and always being aware of any new threats within the industry itself so you can avoid becoming another victim!