Created just hours before the airdrop, a Connext Network address received a significant amount of NEXT tokens through more than 200 requests. An unknown owner immediately sold the coins for a total of over $39,000.
The token airdrop was limited to one transaction per address. The attacker, allegedly, exploited an API vulnerability and carried out what is called a Sybil attack, according to co-founder Arjun Bhuptani.
The wallet sent a large number of requests, causing issues with users’ token claims.
The project team acknowledged the difficulties.
“We detected bot activity that overloads the server of our partner and the Tokensoft service provider. He is actively working on a solution to ensure the ability to submit applications normally,” the developers wrote.
According to them, there is a lot of misinformation circulating on social media about the incident. They advised users to await official statements from the project.
According to Debank data, the unknown address converted NEXT into stablecoin USDT and Ethereum for sale on decentralized exchanges.
Earlier, the Connext team announced the native token airdrop in mid-August. The project launched NEXT in April 2022 and, at the same time, announced the creation of the DAO.