Polygon Based NFT Marketplace Vulcan Forged Coin (PYR) Price Drops 30% After Hack | MyForge Crypto Wallet & Venly Credentials Leak 2022

Vulcan Forged is a free to play fantasy P2E game. It also features an NFT market place and crypto wallet. User activity such as transactions, trades and exchanges are tracked by MyForge, which has access to the users’ wallet. Using the Polygon platform, hackers were able to steal the private keys for 96 crypto wallets and approximately 4.5 million of the PYR tokens native to Vulcan Forged—nearly 9% of the total supply of 50 million tokens. In total, customers lost about $140 million. 

The company has pledged to make users whole with money from its treasury and announced earlier today that half of the stolen funds have already been repaid, but it’s still a disappointing consolation. As of publication, the value of PYR has dropped by over 30% in the last 24 hours, from above $32 on Sunday to below $21.

In an interview with company CEO Jamie Thomson, he said that the hacker was able to access semi-custodial wallets that Vulcan Forged managed for its customers. The problem wasn’t with Venly, its wallet provider, but with Vulcan Forged.

“What’s happened is someone’s exploited our servers, got the Venly credentials, and used it to extract the private keys of the MyForge users,” Thomson said in a video shared on the company’s social media accounts today. Users of MyForge’s asset management tool are able to see their crypto and NFT holdings. “In the future, we will only use decentralized wallets so this problem doesn’t arise again.”

The $140 million is a huge sum for a gaming system with little traction. PYR is stored in 6,501 wallets, including those on exchanges, according to Etherscan. Axie Infinity Shard tokens are stored in 45,073 wallets, by comparison. Considering the high concentration of tokens among relatively few users, the hacker was able to steal an average of $1.46 million per wallet by targeting the community’s whales.

Vulcan Forged’s market cap decreased from $612 million on Sunday to $397 million today.

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Chris Munch

Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.