The cryptocurrency heists just keep on coming: Vulcan Forged announced Sunday that 4.5 million PYR was recently stolen from 148 compromised wallets.
Vulcan Forged described itself as "an established non-fungible token (NFT) game studio, marketplace and dApp incubator with 10+ games, a 2,000+ community and top 5 NFT marketplace volume" in the whitepaper (PDF) announcing its PYR token.
PYR's value pales in comparison to other tokens. CoinMarketCap puts its highest price at $46.62 on December 1. It was trading around $30.98 before Vulcan Forged's disclosure; its price has dropped to approximately $22.14 at the time of writing.
148 wallets holding PYR have been compromised. Over 4.5m PYR has been been stolen.While we will replace the PYR taken, our first steps are understanding what’s happened.No words can do much right now, we know that. We’ll keep updated.December 13, 2021
That drop means whoever stole the 4.5 million PYR made off with $99.6 million rather than $139.4 million. (And that's assuming they can offload nearly one-quarter of the token's circulating supply, which CoinMarketCap puts at 18.9 million tokens.)
This haul is much smaller than the $600 million stolen from—and later returned to—Poly Network in October either way. But it comes in pretty close to the more recent theft of $150 million worth of ETH and BSC tokens from BitMart.
Expect stories of people getting fleeced by crypto exchanges to be a recurring theme indefinitely.
That's true in countless civil suits, however, and is hardly unique to crypto. Place your million-dollar rental property in the hands of a small management agency who allows it to be trashed, and you'll get nothing whatsover from suing them. Does that mean the home had no value? Of course not.
Obviously crypto is an extraordinarily risky investment, especially if you have a non-diversified portfolio held by an exchange in a lightly-regulated foreign nation. That in no way implies that crypto itself "has no formally recognized value", or is unprotected by law.
Crypto is not generally recognized as a currency or publicly-traded security, and thus lacks the additional legal protections these are generally granted. That's a different statement altogether, however.
This makes sense to me. If Tom's Hardware invents "Tom Dollars" based on how many thumbs up a commenter gets and wraps it up in some kind of blockchain security, governments are no more or less obligated to regulate it than cryptocurrency. Crypto was made up out of whole cloth without the input or blessing of government. I don't believe the success or popularity of such a device is relevant to how heavily it is regulated other than the attention it may receive. It is only after the fact that gov agencies may be forced to deal with the theft or other shenanigans. The big difference between bitcoin and "Tom's Dollars" is the actual perceived value (real or otherwise) of the currency or stock or whatever you want to call it. Although stolen crypto could be viewed as something of value that authorities could investigate, since it wasn't set up through government agencies, it may not warrant any more special attention than a stolen scooter, for example.