• Hacked vanity addresses were used to loot $500K worth of tokens during the Arbitrum airdrop on March 23.
• Someone who generated a list of eligible vanity addresses stole the tokens, and the original owners are no longer able to claim them.
• Around 428 million ARB tokens still remain unclaimed, with a value of $596 million.
Arbitrum Airdrop Controversy
According to recent on-chain data, hacked vanity addresses were used in looting $500K worth of tokens during the layer-2 scaling solution Arbitrum airdrop scheduled on March 23. Someone who generated a list of vanity addresses that were eligible for ARB airdrops was the one who stole the tokens. 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. He then managed to generate similar addresses using vanity address generators, eventually directing the airdropped tokens to these newly developed accounts instead. Since these vanity addresses were hacked, the original owners of the ARB tokens will no longer be able to claim them.
Reaction from Crypto Community
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.
Unclaimed Tokens Remain
The token giveaway hosted by Arbitrum generated a lot of buzzes and swamped several other websites; however, according to blockchain analytics tool Nansen reports that there are still 428 million ARB tokens that remain unclaimed. As of late March 22, around 61% out of eligible crypto wallets had already claimed governance token; leaving around 240,000 eligible address without claiming their share yet (37% out fo 1.1 billion). As far as value is concerned, these unclaimed coins amount up too close too $596 Million at this time writing this article
What Are Vanity Addresses?
Vanity address is basically unique crypto address which incorporate user’s chosen phrase or word – like your name or any random combination which you would like it too look like something special than just random numbers & letters combination ethereum wallet address usually looks like.. In January 2021 MetaMask users were sent warning concerning Address Poisoning and it seems fraudsters have been using this method since then in stealing cryptocurrencies form users wallets/accounts..
Cryptocurrency scams involving hacked vanity addresses are becoming increasingly common as fraudsters come up with different ways they can exploit unsuspecting victims’ funds for financial gain. It is important for crypto users and investors alike to stay vigilant and ensure that they protect themselves from such scams by not sharing sensitive information online or giving away access details for their wallets or accounts easily.