Skip to content Skip to sidebar Skip to footer

NFT Marketplace OpenSea Was Hacked, Resulting In The Loss of NFTs For Users

Market leader in NFTs, OpenSea is looking into “rumors of an exploit” utilizing smart contracts on its platform after traders who lost precious tokens began to panic on Twitter.

It appears that a harmful contract is buried under a disguised URL, according to a blockchain security startup that audits smart contracts, PeckShield. The link could have come from an email addressed to everyone in the company informing them of the upcoming move.

A total of $1.7 million in Ethereum, two Cool Cats, one Azuki, and three Bored Ape Yacht Club tokens were also found on the attacker’s address. According to a tweet from OpenSea on Saturday night, a smart contract exploits involving OpenSea is being investigated.

The CEO of OpenSea asked affected customers to contact him directly on Twitter. Three NFTs were confiscated by the UK tax authority last week as part of an investigation into a 1.4 million-pound (almost $1.9 million) fraud case, according to the BBC on Monday.

How to keep your NFTs safe

  • NFTs can only be stored in a crypto wallet at this point. Both hot and cold wallets are available, and both are used to store cryptocurrency.
  • Most NFT marketplaces require the use of a software wallet in order to sign up for an account. Even when your private keys are linked to the internet, dApps and NFT markets expose your private keys to some level of danger in order to allow transactions. Paying by debit or credit card is still a risky option.
  • Instead of storing your private keys on the internet, hardware wallets ensure the highest level of security. NFTs can’t be bought or sold directly on markets because of this.