Shocking $120 Million Claim for Ethereum Altcoins: 12 Wallets Can Be Emptyed!

Ethereum layer 2 (L2) networks appear to be at risk of a hack worth hundreds of millions of dollars.

Conduit founder Andrew Huang included the risk of cyber attacks on Ethereum L2 networks. Huang noted that multiple Ethereum L2 networks are controlled through a single multi-signature (multisig) wallet, putting the $121 million fund at risk. It was emphasized that a total of 12 network wallets could be directly affected by this situation.

The networks controlled by this wallet include Zora, Aevo, Hypr, Orderly, Ancient8, Lyra, Mode, Pgn, Parallel, and Metal. However, this wallet needs three of the team's five signatures to make transactions, and these private keys are stored in hardware wallets.

Huang emphasized that such an attack is not possible except in the case of three people being physically captured. It was also noted that the system will be upgraded to have seven signatures out of five in the coming weeks.