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.
  • Because the incident, lots 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 had 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 solution 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 response to blockchain safety firm PeckShield, an attacker discovered a solution to manipulate the worth of listed NFTs on Treasure, permitting them to purchase NFTs for 0 MAGIC tokens. 

PeckShield estimates greater than 100 NFTs had 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 fashionable assortment referred to 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 affordable Smol Brains usually commerce for round $9,500 right this moment. 

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. 

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 right this moment,” they wrote. GoudaGaarp went on to clarify that TreasureDAO had frozen the Treasure market pending a full code overview. TreasureDAO can even take an energetic function in distributing NFTs again to their rightful homeowners and plans to suggest a number of remediation choices to make sure customers are made complete.

Nonetheless, because the scenario progressed, it appeared that lots of the hackers had a change of coronary heart. A Twitter person 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 attributable to TreasureDAO freezing buying and selling and sure planning to blacklist all stolen NFTs. 

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

Disclosure: On the time of penning this piece, the creator owned ETH and several other different cryptocurrencies.

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