Vulcan Forged
HackedNFT · $PYR · born 2020 · ✝ 2021
A Web3 game studio lost $140M when its custodial wallets leaked.
Vulcan Forged was a blockchain gaming and NFT platform. In December 2021 attackers accessed private keys for user wallets hosted by its custodial provider, draining roughly $140M in PYR and other assets.
- Peak
- ~$140M stolen
- Cause
- Hacked
- Year of death
- 2021
☠️ Cause of death
Private keys for many users' on-platform wallets were stored by a custodial service and compromised at once. Vulcan Forged covered affected users from its treasury but the custodial model was exposed.
📓 Lessons left behind
- —Custodial 'convenience' wallets pool everyone's keys into one target.
- —Gaming platforms inherit exchange-grade custody risk.
- —Reimbursement from treasury only works until the treasury runs out.
🌱 The idea that survived
Non-custodial game wallets
Web3 games shifted toward self-custody and MPC wallets so a single provider breach can't drain every player.
#nft#gamefi#custody#exploit