2,400 Wallets Compromised in Arbitrum Airdrop, Raises Security Concerns

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Key takeaways:

  • According to Arkham Intelligence, a hacker erroneously authorized the ARB airdrop.
  • On March 23, the ARB cryptocurrency from Arbitrum is scheduled to go live, with estimates putting its price at or below $1.

The cryptocurrency community has avidly anticipated the Arbitrum airdrop. On March 23, the eagerly awaited event is predicted to take place. The buzz surrounding the airdrop has been growing significantly. Even though it benefits the network, some individuals may feel the effects more than others.

A new discovery by the blockchain intelligence company Arkham indicates that 2,400 could be misused. It has been claimed that Gas has been sent to 2,400 wallets from a wallet address designated as an “Arbitrum Airdrop Exploiter” by the project.

After approving the ARB coin, these wallets wait for the airdrop. The movement of all ERC20 tokens held in the account to another address is allowed after these tokens are approved. In the above-mentioned situation, the hacker could quickly shift the ARB tokens from the victim addresses by calling a single function. Arkham explained how the exploiter accomplished this in more detail:

“these are 2400 wallets for which the hacker somehow accessed the seed phrase/private key. He approved $arb on the 0x59 contract – in order to sweep all the ARB out of the wallets by calling a function through the contract, rather than attempting to submit transactions individually.”

The hacker already has access to these funds, but Arkham suggested returning them.

The excitement surrounding this event increased Arbitrum DeFi’s presence, and a number of other variables did as well. With significant week-over-week growth, another layer-2 solution, zkSync, has profited from the buzz surrounding its airdrop.

Data from analytics company Nansen shows that over 39,000 addresses have linked $871 million to zkSync in the last seven days. Five times as many addresses have bridged to zkSync in the last week.

After the upcoming Arbitrum airdrop, zkSync and StarkNet are the upcoming airdrops with the most significant potential worth. On March 17, roughly 5,000 users deposited more than 536 ETH using the zkSync bridge, while just under 3,000 users deposited more than 234 ETH using the StarkNet bridge. The airdrop is helping the environment in many ways, but some people have also been caught abusing it.

There has been a lot of conjecture about the price of ARB before the token launch. Users’ predictions have been founded on OP, Optimsim’s native token.

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