Analysis

Hackers Steal NFT Monkeys on Top Ethereum Layer 2

Key Takeaways

  • Hackers have stolen tons of of NFTs from the Arbitrum NFT market Treasure.
  • Treasure builders shortly froze buying and selling to keep away from additional losses.
  • For the reason that incident, most of the hackers have return the NFTs to their rightful homeowners.

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The Arbitrum-based NFT market Treasure has been hacked. Builders froze buying and selling after tons of of NFTs from the Smol Brains and Legions collections have been stolen. 

Treasure Market Hit by Exploit

The Treasure market has suffered an exploit.

Treasure, the largest NFT market on the Ethereum Layer 2 answer Arbitrum, was hit by an assault early Thursday morning, leading to tons of of NFTs being stolen. Hackers discovered a technique to purchase NFTs listed on the Treasure market with out paying for them. Treasure builders shortly reacted by freezing buying and selling on {the marketplace} to keep away from additional injury. 

Treasure is the hub for NFTs within the TreasureDAO NFT ecosystem. As an alternative of utilizing Ethereum or stablecoins to purchase and promote NFTs like on OpenSea, Treasure solely lets customers transact utilizing MAGIC tokens, the ecosystem’s native foreign money. In line with blockchain safety firm PeckShield, an attacker discovered a technique to manipulate the worth of listed NFTs on Treasure, permitting them to purchase NFTs for 0 MAGIC tokens. 

PeckShield estimates greater than 100 NFTs have been stolen from {the marketplace} earlier than builders froze buying and selling. One handle seems to have stolen 17 pixel-art monkeys from the Smol Brains assortment. If bought for the unique itemizing costs, these NFTs would have price a purchaser over $1.4 million value of MAGIC tokens on the time of the hack. Since Smol Brains and one other common assortment known as Legions are at the moment probably the most precious and actively traded NFTs on Treasure, they seem to have borne the brunt of the exploit. The most cost effective Smol Brains usually commerce for round $9,500 at this time. 

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As information of the exploit circulated on-line, the worth of the MAGIC token dropped sharply, bottoming out at a 33% loss earlier than posting a slight restoration. MAGIC is at the moment buying and selling at $3.38, down 11% from pre-exploit ranges. 

chart 2
MAGIC/USD (Supply: CoinGecko)

In response to the exploit, TreasureDAO’s GoudaGaarp took to Discord to reassure the Treasure neighborhood. “Deepest and sincerest condolences for these impacted by the exploit at this time,” they wrote. GoudaGaarp went on to clarify that TreasureDAO had frozen the Treasure market pending a full code assessment. TreasureDAO can even take an lively position in distributing NFTs again to their rightful homeowners and plans to suggest a number of remediation choices to make sure customers are made entire.

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Nonetheless, because the state of affairs progressed, it appeared that most of the hackers had a change of coronary heart. A Twitter consumer posting below the deal with @Br0keboy96 pointed out that transaction information from Arbiscan reveals dozens of NFTs stolen from Treasure being returned to their rightful homeowners. Presumably, the hackers realized that the stolen NFT couldn’t be cashed out as a consequence of TreasureDAO freezing buying and selling and certain planning to blacklist all stolen NFTs. 

As NFTs have boomed in reputation, exploits and hacks concentrating on NFT marketplaces have elevated. Final month, a hacker utilizing phishing emails was capable of steal roughly thousands and thousands of {dollars} value of NFTs from unsuspecting OpenSea customers. Whereas DeFi protocols and cross-chain bridges have usually been common targets for hackers, as non-fungible tokens develop in worth and recognition, extra assaults in opposition to purposes like Treasure are seemingly. 

Disclosure: On the time of penning this piece, the writer owned ETH and a number of other different cryptocurrencies.

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