How hackers and scammers steal assets on OpenSea

Business News

OpenSea NFT platform has been witnessing compromise from scammers and hackers who steal the assets of users.

ArtNews reports that there are currently three lawsuits against the cryptocurrency company on lost Bored Ape Yacht Club NFTs.

Timmy McKimmy, a Texas resident, and Michael Valise, who lives in New York, said that they lost Bored Apes to hackers.

They claimed that the hackers exploited a familiar code, which is vulnerable in OpenSea’s network.

On the other hand, Robert Armijo, a resident of Nevada, claimed that a social engineering attack led to the loss of his Apes.

He believed that OpenSea was too negligent to prevent the attack.

McKimmy’s Lawyer Steps In

McKimmy’s lawyer, Ash Tadghighi, explained that his client’s NFT was not even listed on the platform.

“Even though McKimmy didn’t have his NFT listed for sale, OpenSea requires you to connect a wallet, and so people can see what NFTs are in that wallet and can make offers on unlisted NFTs.

“Exploiting a security vulnerability, the hacker made an offer, hacked the code, and accepted the offer on behalf of Mr. McKimmy.

“So he basically sold it to himself and within the hour sold it to another user.”

Reports show that the hacker sold the NFT to himself for 0.01 ETH ($30.60) and sold it to another person for 99 ETH ( $302,985).

Thereafter, the wallet used for the transactions ceased to exist, and the hack took place in February.

According to court documents, when McKimmy got in contact with OpenSea, they told him that they would investigate.

Up till now, the investigation on the matter is still ongoing.

A Nicer Hacker

On his part, Michael Valise said that he lost Bored Ape #8858 in a hack that took place around January 26.

The hacker bought Valise’s NFT cunningly for 24.89 ETH ($75,699) and resold it immediately for 92.9 ETH ($282,544).

Social Scamming

Robert Armijo’s loss did not take place on OpenSea’s platform.

He lost Bored Ape #4329 and two Mutant Bored Apes, #1819 and #7713.

He went on Discord in February to trade one of his Mutant Bored Apes for a few Cool Cat NFTs.

Furthermore, he got someone ready to make a deal.

The user sent him a link, and when he clicked on it, his wallet was drained.

The wallet contained two Mutant Apes, Bored Ape, as well as some cryptocurrency.

He sued OpenSea because all efforts to reach them so that they could block the scammer from selling on their platform proved abortive.

 

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