Magic Eden Unverified NFT Bug Patched After Multiple Sales

NFT marketplace Magic Eden has fixed an issue where unverified NFTs would appear in verified collections. The exploit was a result of a UI bug.

Solana-based NFT marketplace Magic Eden has fixed a bug where unverified NFTs would show up as verified. The team tweeted on Jan. 5 that the impact was contained to 25 unverified NFTs sold in four verified collections. It resolved the issue and will refund affected users.

Earlier today, unverified NFTs were being shown as part of verified collections on ME. In the last day, impact was contained to 25 unverified NFTs sold in 4 collections.
We’ve resolved the issue and will refund those affected. Now, no one can buy unverified NFTs on ME.
— Magic Eden 🪄 (@MagicEden) January 4, 2023

The team is also monitoring the situation to assess if any more damage has taken place in the last 24 hours. It has asked users to hard refresh their browsers. As it stands, no one can buy unverified NFTs on Magic Eden.

Reports were emerging from the crypto community on Jan. 4 related to fake NFTs. These individuals noted that attackers were intentionally going after high-value NFTs.

Do not buy these @y00tsNFT on @MagicEden, they are fake!
Basically, every single collection is fake on Magiceden, a massive exploit is happening ongoing.
High-value NFTs are suffering the most, as attackers choose to exploit higher-value NFTs first. pic.twitter.com/35RYHOKVxd
— HGE.SOL 🔤🧙‍♂️ (@HGESOL) January 4, 2023

The root cause appears to be a UI issue related to a new feature deployment released to the Snappy Marketplace and Pro Trade tools. The former shows newly listed and sold items on the screen in real time, while the latter allows them to see stats in real time.

Bugs in New Features Led to Incident

The UI bug was present in both of those deployed features. Specifically, it added unverified NFTs into the collections at large. Magic Eden states the issue,

“The technical explanation is that our activity indexer for these two tools did not check that the creator address is verified. Magic Eden’s smart contract remains secure, and this incident was an isolated UI issue.”

There was also the case of users seeing pornographic images and shots from the TV show the Big Bang Theory on the platform. Magic Eden said that a third-party service for caching images was compromised. The team also emphasized that there was no hack and Magic Eden is safe for trading.

Magic Eden Releases Launches Loyalty Rewards Program

Despite this hiccup, Magic Eden has been releasing new features and undergoing developments. The project released a loyalty rewards program called Magic Eden Rewards. This initiative rewards users with ‘Magic Points’ based on the secondary trading transactions on the platform. Perks include discounts, NFT giveaways, and exclusive content.

A Polygon Launchpad gaming project called Shatterpoint also launched on the platform recently. This free-to-play action multiplayer game is available on mobile devices. This game was followed by a racing game launching called Infinite Drive.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Source: https://beincrypto.com/magic-eden-marketplace-patches-fake-nft-bug/