NFT Trader Platform Compromised, Millions in Digital Assets Lost

NFT Trader, a peer-to-peer trading platform, has faced a significant security breach. This attack led to the unauthorized transfer of numerous high-value NFTs, including prized tokens from the Bored Ape and Mutant Ape Yacht Club collections, World of Women NFTs, VeeFriends, and Art Blocks. The financial repercussions are staggering, with losses running into millions.

NFT Trader Platform’s Urgent Call to Users

Following the breach, NFT Trader urgently called its users to revoke permissions linked to two compromised smart contracts. This measure aims to prevent further unauthorized transfers. The company confirmed the attack on “old smart contracts” in an X post and highlighted the importance of user vigilance in securing digital assets.

Hacker’s Actions and Demands

The main hacker, whose identity remains unknown, has communicated via the blockchain. They claim the exploit was initially intended to clean up “residual garbage.” However, the situation escalated, with the hacker demanding ransoms of 3 ETH and 0.6 ETH for the return of Bored Apes and Mutant Apes, respectively. Adding to the complexity, the hacker unexpectedly refunded one Bored Ape along with 31 ETH to a user and returned certain staked Bored Apes to their owners while retaining the ApeCoin rewards.

Reports have emerged of auxiliary hacks resulting in the loss of other NFTs, such as Cool Cats and Squiggles, from users’ wallets. The community response has been mixed, with confusion and concern over the unpredictable nature of the hacker’s actions. NFT Trader has not yet responded to requests for comments on these additional incidents.

BAYC Founder Steps Up Amidst Crisis

In a significant development, the Bored Ape Yacht Club’s founder, Garga, has offered to pay the 10% ETH bounty demanded by the hacker. This intervention is critical to resolving the crisis and recovering the stolen NFTs. However, it also raises concerns about setting a precedent for future cyber attacks, signalling that ransom demands might lead to financial gains for hackers.

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

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