A massive cyberattack today affected NFT Trader, one of the most popular platforms for private private trading, compromising its online security. As a result, they fraudulently obtained millions of dollars worth of valuable non-fungible tokens (NFTs). The precious items came from a variety of collections, including World of Women NFTs, VeeFriends, Art Blocks, Bored Ape and Mutant Ape Yacht Club tokens, and more. This was a huge setback for the entire NFT community.
The company recently raised this issue. NFT Trader admits the cyberattack targeted older smart contracts. We even recommend that all users immediately revoke previously provided smart contract authorizations to prevent further assets from being hacked.
According to NFT Trader user foobar, the attack stopped after changes were made to the platform’s smart contracts. The full upgrade is designed to address re-entrancy flaws exploited by attackers.
The key suspect in this case showed his bravery by broadcasting a public message through blockchain. The perpetrator said in a statement that he had not found a means to exploit NFTs. Rather, another user did. They also justified their actions by claiming that they had to dispose of the waste. Moreover, the attackers proposed an unusual solution: offering stolen tokens to victims in exchange for a ransom. The asking price was 3 ETH (Ethereum) per Bored Ape and 0.6 ETH per Mutant Ape.
What these attackers did after the cyberattack is strange and mysterious. For example, we returned a Bored Ape NFT and 31 ETH to a specific person. They also returned some of the staked Bored Apes to their owners, but retained the ApeCoin rewards associated with those apes.
But this first attack did not end the chaos. In addition to this attack, there have been other cases of linked server hacks where consumers lost their funds. As a result, popular tokens like Squiggles and Cool Cats were removed. A secondary attack will only worsen the pain and anxiety of the NFT community.
NFT Trader’s response to this situation is currently being scrutinized and the event continues to unfold. The Block, a leader in digital asset news, has contacted the company, but there has been no official statement yet. As a result, what happened has raised concerns throughout the community, with community members turning to NFT Trader for explanations and assurances about their virtual holdings.
An overheated market is prone to collapse, and this incident marks a watershed in the development of digital asset trading. This highlights the need for smarter contracts and more secure contract structures to protect the investments and assets of NFT proponents. And with the NFT market booming, these incidents serve as a reminder of how not to take risks while investing in digital assets. Don’t be complacent about the changing face of cyber risk.