In a stunning turn of events, the peer-to-peer trading platform NFT Trader has fallen victim to a bold cyber heist, resulting in the theft of millions of dollars’ worth of high-value Non-Fungible Tokens (NFTs). The attack, executed with sophisticated precision, targeted rare tokens from renowned collections such as Bored Ape and Mutant Ape Yacht Club, World of Women NFTs, VeeFriends, and Art Blocks.
Sophisticated Attack on NFT Trader
NFT Trader has officially confirmed the cyber heist, revealing that the hackers exploited “old smart contracts” as their point of entry. Users have been urged to revoke any permissions previously granted to these smart contracts. The attack was reportedly halted after NFT Trader updated its contracts to address a reentrancy vulnerability.
The company stated, “There was a malicious code execution from a third party to our two older smart contracts. However, we’ve implemented all necessary measures to prevent any such incidents in the future.”
Bold Move: Hacker’s Public Message and Ransom Demand
In a daring move, the primary attacker left a public message on the blockchain, blaming another user for the NFT exploit and justifying the attack as an effort to “pick up leftover trash.” The hacker even proposed returning the stolen tokens in exchange for a ransom – 3 ETH per Bored Ape and 0.6 ETH per Mutant Ape.
The situation took a peculiar turn as the hacker returned one Bored Ape with an additional 31 ETH to a user and certain staked Bored Apes to their owners, while retaining the ApeCoin rewards. The hacker defended these actions, claiming limited technical skills and demanding a bounty for the return of the remaining affected NFTs.
“I’m a good person; the value of these NFTs is enough for a person to live a free life, but I don’t care about that… If you want [your NFTs] back, then you need to pay me a bounty, which is what I deserve,” stated the hacker.
NFT Market Surges Amid Security Breach
Interestingly, the NFT market witnessed a surge in activity amid the security breach. Sales soared by 52.81% over the past week, accumulating a staggering $503.35 million. Notably, NFTs on the Bitcoin network outperformed Ethereum, securing $276.79 million compared to Ethereum’s $99.67 million.
“The burgeoning interest and investment in NFTs could be partly attributed to the general sentiment of a bull market in the crypto sphere. Typically, in such market conditions, capital tends to flow towards NFTs,” noted a report by DappRadar.
Notable Sales Despite Security Concerns
Despite the security concerns, notable NFT sales occurred during the week, including Ethereum’s Fidenza #985, fetching $277K, and a Bitcoin-based NFT featuring a Van Gogh painting, sold for $263K.
In the wake of the NFT Trader cyber heist, the broader implications for the NFT market remain uncertain. The incident underscores the challenges and risks associated with the burgeoning NFT space, prompting a closer examination of security measures and risk mitigation strategies within the crypto community.
