Hacker Steals $500K in Controversial Arbitrum Airdrop

• Someone used hacked vanity addresses to loot $500K worth of tokens during the layer-2 scaling solution Arbitrum airdrop.
• Around 428 million ARB tokens still need to be claimed and their value is close to $596 million.
• Vanity addresses are unique crypto address incorporating a user’s chosen phrase or word.

Hacked Vanity Addresses Loot $500K During Airdrop

According to recent on-chain data, someone used hacked vanity addresses in looting $500K worth of tokens during the layer-2 scaling solution Arbitrum airdrop scheduled on March 23. The tweet explained that the tokens had been stolen by an individual who had first compiled a list of vanity addresses qualified to receive ARB tokens and then managed to generate similar addresses using vanity address generators. Since these vanity addresses were hacked, the original owners of the ARB tokens will no longer be able to claim them.

Controversies Surround Airdrop

Several cryptocurrency users have taken to Twitter to express their dismay following the theft of their ARB tokens. Most of those impacted need to be more knowledgeable regarding the cause of the loss and have no idea how to respond appropriately. The token giveaway hosted by Arbitrum generated a lot of buzzes and swamped several other websites. Even with this, blockchain analytics tool Nansen reports that there are still 428 million unclaimed ARB tokens representing 37% of the 1.1 billion ARB allotted for Arbitrum’s airdrop.

Vanity Addresses Explained

This is not the first time fraudsters have used hacked vanity addresses in cryptocurrencies as MetaMask users were sent a warning concerning address poisoning in January 2021. A vanity address is a unique crypto address incorporating a user’s chosen phrase or word which can easily be targeted by hackers if not properly secured with cryptographic keys and other security measures such as two-factor authentication (2FA).

Impact Of Theft On Unclaimed Tokens

The impact on unclaimed tokens from this theft has yet not been determined as some eligible wallets without claiming their tokens may include those with hacked addresses as well. It remains unclear if any measures are being put into place by Arbitrum or exchanges like Kucoin in order help compensate victims whose funds have been stolen due this hack attack or any other similar attacks in future including those using hijacked vanity accounts..

Conclusion

Cryptocurrency users should remain wary when it comes to generating new wallet transactions involving either large sums or highly valuable assets such as digital currencies like ARB or even other cryptosystems like Bitcoin (BTC). In addition, one must take extra care when creating unique wallet addresses via services like MetaMask by utilizing strong passwords and additional security features such as 2FA whenever possible for added protection against potential hacking attacks targeting vulnerable accounts through compromised vanity accounts..