The capital of South Korea Metropolitan Police Agency’s cyber bureau has arrested a 26-year-old man for allegedly defrauding 9 investors of 210 million KRW (US$165,798) over the sale of non-fungible tokens (NFTs) of a cat-like character named CatSle. per the police, the anonymous suspect registered ten,000 CatSle NFTs on the OpenSea NFT marketplace from Gregorian calendar month last year.
The CatSle project claimed that it’d bring a hard and fast quantity of KLAY cryptocurrency for each 10 purchases of the NFT. The police aforementioned none of the NFT consumers have received the crypto reward.
CatSle was hacked in January
The CatSle project declared it had been hacked and closed in the Gregorian calendar month once mercantilism 5,000 NFTs to 298 people, raising 270 million KRW. Therefore far, 9 investors have come back forward, however a lot of victims are expected to create themselves famed within the close to future, per police. The police also aforementioned they believe the value of the NFT could be manipulated higher by artificial trading.
Investigation is still on
The cyber bureau additionally employed four alternative people who helped style and promote the CatSle NFTs. Earlier this year, South Korea’s monetary higher-up Service declared it would strengthen watching of recent tradable assets appreciate NFTs.
Can bots manipulate NFTs’ prices?
NFTs are manipulated by falsifying their buy associated sell orders mistreatment bots. Once bots place such orders at scale, with their actual completion subject to the manipulator’s requirements, distribution of a true worth to an NFT and gauging its original value effectively will be challenging.
NFTs give a singular challenge during this regard, as their price is usually supported by what a vendee is willing to buy their ownership. It will estimate the worth of an NFT, a challenge within the event of even one vulnerable collector who falls prey to manipulations through NFT bidding bots or alternative techniques.
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Source: https://www.thecoinrepublic.com/2022/04/28/man-behind-catsle-nfts-is-arrested-by-south-korean-police/