Attacker drains tokens from Layer2DAO, project buys some of them back

October 23, 2022

Attacker drains tokens from Layer2DAO, project buys some of them back

An attacker was able to siphon nearly 50 million L2DAO tokens from a multi-sig wallet on the Optimism protocol. These tokens would nominally have been valued at around $400,000 at the price at the time of the hack, although the token has low liquidity and the attacker would not likely have been able to sell them for that price. The stolen tokens amounted to 5% of the project's total token supply.

The attacker swapped 16.7 million of the tokens before the project was able to negotiate a deal to buy back the remaining 33.2 million tokens at a price of $0.001. In the end, the hacker made off with the $33,200 paid by Layer2DAO, plus 40.4 ETH (~$54,000) from the tokens they were able to sell.

The Layer2DAO team seemed unsure how the hack had happened, but said that they believed it was similar to the June 2022 incident in which an attacker got hold of 20 million Optimism tokens after Wintermute provided an incorrect wallet address.

Tweet thread by Layer2DAO