Proposals in crypto communities help make decisions based on consensus. However, for the decentralized music platform Auduis, the acceptance of a malicious governance proposal resulted in a transfer of $5.9 million worth of tokens, with the hacker taking $1 million.

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July 24 malicious offer (Offer No. 85) a request to transfer 18 million native Audius AUDIO tokens was approved by a community vote. For the first time, @spreekaway drew attention to Crypto Twitter. created a malicious suggestion where they “could call initialize() and designate themselves as the sole custodian of the management contract”.

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Further investigation by Auduis confirmed the unauthorized transfer of AUDIO tokens from the company’s treasury. After the exposure, Auduis actively stopped all Audius smart contracts and AUDIO tokens on the Ethereum blockchain.

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Blockchain researcher Peckshield has narrowed the error down to Audius storage schema inconsistencies.

While the hacker’s management proposal robbed the treasury of 18 million tokens worth almost $6 million, it was soon dumped and sold for $1.08 million. While the dumping resulted in maximum slippage, investors recommended an immediate buyback to prevent existing investors from dumping and lowering the token floor price further.

Investors have yet to get clarity on the stolen funds, as one investor asked, “They hacked into the community fund, right? The team fund is separate, right?”

While the autopsy report is being prepared, Audius has yet to respond to Cryptooshala’s request for comment.

Yuga Labs Warns of ‘Persistent Threat Group’ Targeting NFT Holders

Bored Ape Yacht Club (BAYC) creator Yuga Labs has issued a second warning about an expected “coordinated attack” on its social media accounts.

In June, Gordon Goner, the pseudonymous co-founder of Yuga Labs, posted the first warning of a possible inbound attack on his Twitter social media accounts. Shortly after the warning, Twitter officials actively monitored the accounts and increased their existing security.