Meta NFT was attacked and advised users to convert it to META tokens.
TornadoCash poses a challenge to the security regulations.
The MetaDragon, a decentralized NFT game platform, has been a victim of a hack resulting in the theft of 321.5 $BNB worth $192K. According to Peckshield, a blockchain security firm, the stolen assets have been transferred to TornadoCash, a privacy-focused mixer.
#PeckShieldAlert @MetaDragonDao exploiter -labeled address has already sent 321.5 $BNB (worth ~$192K) to #Tornadocash pic.twitter.com/xYnDphyLQY
— PeckShieldAlert (@PeckShieldAlert) May 30, 2024
MetaDragon posted on the X platform which informed 24 hours ago to the users that the META NTFs contract was attacked and to convert META NFTs into tokens sooner to reduce community losses. The hacker converted the NFTs into META tokens and has already sold them.
CAUTION: Please convert your META NFTs to tokens as soon as possible to reduce community losses! The META NFT contract has just been hacked. The hacker converted many NFTs in wallets to META tokens and sold them. The attack path originated from the META NFT. The…
— MetaDragon (@MetaDragonDao) May 29, 2024
TornadoCash is an Ethereum-based mixer known for its ability to conceal the origins and destination of crypto transactions. This allows the users to mix their tokens with others to anonymize the asset. With the use of TornadoCash, the hackers have made challenges for authorities and security firms to trace and recover the stolen assets.
How MetaDragon Takes This Forward?
MetaDragon protocol is known for its novel approach to Play-to-Earn (P2E) gaming. Which integrates elements such as NFT trading, gaming, and financial incentives. The platform uses the NFT111 protocol to enhance liquidity and stability within its ecosystem. And this not only affects the financial stability of MetaDragon but also the trust within the community and potential investors.
This incident sheds light on the security challenges of DeFi platforms. Moreover, the anonymity offered is beneficial for privacy and displays obstacles to regulatory compliance and security enforcement.
The community intended to enhance its security to safeguard its ecosystem, execute a security audit of all its contracts, and introduce enhanced security mechanisms to protect assets. Furthermore, MetaDragon is exploring insurance options for digital assets to provide an added layer of security.
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