$5.7m of cryptocurrency tokens lifted from content creators' wallets

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"It is hard to put into words how devastating this is."

Hacker uses crypto hot wallet key to steal ethereum
(Image credit: Pixabay)

It would seem that over the weekend, Roll—a blockchain infrastructure site aimed at content creators—was subject to a cyberattack that cost it's customers $5.7M worth of cryptocurrency tokens.

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The site, which allows custodians of online communities to create, mint, and vest social money in the form of Ethereum-based tokens, has since paused all withdrawals of social money until it's hot wallet system has been successfully migrated. 

Unfortunately, the hacker has already redeemed the tokens for Ethereum and made off with the swag.

As with any wallet connected to the internet, there are inherent security risks, but there's no word yet on exactly how the hacker managed to gain access to the hot wallet. A post on the Roll blog (via TechCrunch) indicates that the company suspects the hacker was able to compromise the system by deciphering private keys used to access its hot wallet system, and that the breach was not a result of a bug in the system itself. 

By way of apology, Roll has introduced a $500,000 fund to compensate "any creators and their communities affected by this," which the company has begun reaching out to individually. But as a result of the attack, creators have been struck with crippling losses.

One reply to Roll's announcement of a compensation fund on Twitter criticises the meagre amount, declaring that their community "just lost EVERYTHING."

It's a sad day for online communities that distribute their currency via Roll, but at least the site is taking steps in the right direction. For some, though, it's clear that this may not be enough to keep them above water.

Katie Wickens
Katie Wickens
Hardware Writer

Having been obsessed with game mechanics, computers and graphics for three decades, Katie took Game Art and Design up to Masters level at uni and has been writing about digital games, tabletop games and gaming technology for over five years since. She can be found facilitating board game design workshops and optimising everything in her path.