NFT Platform Falls Prey to High-Stakes Cyber Heist

Sophisticated Hack Targets Prominent NFT Collections

In a striking example of digital vulnerability, the NFT trading platform NFT Trader has suffered a significant security breach. This incident resulted in the theft of millions of dollars in Non-Fungible Tokens (NFTs), including sought-after pieces from collections like Bored Ape and Mutant Ape Yacht Club, World of Women NFTs, VeeFriends, and Art Blocks.

Hacker's Entry Through Old Contracts

NFT Trader pinpointed the hackers’ entry via outdated smart contracts. Following the attack, the platform has updated its contracts to fix a reentrancy vulnerability. “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,” the company stated. They also recommended using tools like revoke(.)cash for enhanced security post-transaction.

Attacker's Brazen Demands and Actions

The main hacker, leaving a trace on the blockchain, demanded ransom for the return of the stolen tokens - 3 ETH per Bored Ape and 0.6 ETH per Mutant Ape. This incident also saw the attacker returning one Bored Ape with an additional 31 ETH to a user and certain staked Bored Apes to their owners, while keeping the ApeCoin rewards. “I’m a good person...My technical skills are limited, I can’t get all the affected NFTs at once, and it’s costing me a lot of energy and time, so.. If you want [your NFTs] back, then you need to pay me a bounty, which is what I deserve,” the hacker claimed.

NFT Market Surges Amidst Security Concerns

Despite the security breach, the NFT market witnessed a 52.81% increase in sales, totaling $503.35 million in a week. NFTs on the Bitcoin network dominated with $276.79 million in sales, overshadowing Ethereum’s $99.67 million. This surge aligns with the current bullish trend in the crypto market, where NFTs often see increased investment during such phases.

Despite the innovative nature of NFTs and blockchain technology, this event underscores the persistent risks and challenges in ensuring digital asset security.