A massive cyber attack today breached online security by affecting NFT Trader, one of the most popular platforms for private individual trading. As a result, they fraudulently obtained millions of dollars in valuable Non-Fungible Tokens (NFTs). Prized items came from a variety of collections, including World of Women NFTs, VeeFriends, Art Blocks, the Bored Ape and Mutant Ape Yacht Club tokens, and others. It was a major setback for the entire NFT community.
The company recently raised this issue. NFT Trader admits that the cyber-attack is aimed at old smart contracts. It even recommends all its users cancel any previously provided authorization of such a smart contract immediately so that no additional assets are hacked away.
Attacks stopped after the platform’s smart contracts underwent changes, according to foobar, a NFT Trader user. The entire upgrade was designed to address a reentrant flaw that attackers exploited.
The key suspect in the current incident showed bravery by broadcasting a public message on the blockchain. The perpetrator stated in their communiqué that they did not uncover a means to exploit NFTs; rather, another user did. They also justified their acts by claiming that rubbish had to be discarded. Furthermore, the attacker proposed an unusual solution in which stolen tokens would be given to those affected on demand in exchange for a ransom. The asking price was 3 ETH (Ethereum) every Bored Ape and 0.6 ETH per Mutant Ape.
After the cyber attack, what this attacker has been up to is both strange and mysterious. For example, they returned a Bored Ape NFT and 31 ETH to a specific person. They also gave back some of the staked Bored Apes to their owners but held onto the ApeCoin rewards connected with those apes.
But the chaos did not end with this first attacker. Aside from this attack, there have been other instances of connected server hacks in which consumers have lost their funds. As a result, popular tokens like Squiggles and Cool Cats have been removed. Secondary attacks have only exacerbated the pain and anxiety in the NFT community.
NFT Trader’s response to the situation is now under scrutiny, with events still unfolding. The Block, a leading source of news on digital assets, has contacted the company, but there is still no official statement. As a result, what happened has caused concern throughout the community, with members of it looking to NFT Trader for explanations and guarantees about their virtual holdings.
Such overheated markets are prone to collapse, and this specific incident constitutes a watershed moment in the evolution of digital asset trading. It emphasizes the need for smarter contracts and more secure contract structures to protect NFT supporters’ investments and assets. And, with the NFT market on a high, this occurrence is a sobering reminder of how not to embrace risk while speculating on digital assets. Don’t be lulled into complacency by the changing face of cyber risks.