OpenSea Bug led Lottery for Scammer

29 Jan 2022

One this that is still trending in markets are NFT's, even being the drop in the market, NFT's are still doing good with good listed projects.

Most of the Famous NFT projects are like Crypto Punks, Bored Apes, Mutant Ape Yacht Club. What's common in all that. They are all listed on Open sea.

Open sea

It is the largest marketplace to Buy and Sell NFT's (Non-Fungible Tokens).
It is based on Ethereum Blockchain and allows to hold, buy and sell all the digital assets like Pictures, Digital Arts, Music, etc.

All the transactions are in Eth and are decentralized. Many Big projects are listed on OpenSea and it is the Largest MarketPlace in NFT's

Bug in OpenSea

On Jan 24 2022 a Bored Ape owner named @T_BALLER6 on Twitter Twitted

He didn't even listed his ape on open market place yet it got sol for 0.77 ETH which is around $1897 as of now. And after some time the NFT got sold for 84.2 ETH.

The hacker named jpegdegenlove exploited the OpenSea website and used bug in the website to purchase the NFT at a lower price than the current market.

He also purchased a total 7 NFT's on Opensea and Sold them for huge profits going in about a million.

OpenSea doesn't seem to notice at first but then they agreed hacker used to Buy NFT's as on the Old market the listing were still open which the owners didn't know

One says the Hacker used the bot to scan the Blockchain on OpenSea and by searching NFT's pending transaction hacker exploited it.

After selling all the NFT's the hacker transfer its funds to Tornado cash which stops us to track transactions further on ethereum blockchain.
That is the transactions cannot be traced further after sending to Tornado Cash.

The funny thing is after scamming people for about a million dollars, he transfers some profits to the original users about $70,000 as compensation.

After hearing the New many NFT owners are not holding their NFT on the open sea and Withdrawing to Private wallets seeing thee vulnerability.

OpenSea will look into the matter of whether the hacker can be traced and improved its websites raising concerns over the bug.

Is OpenSea Decentralised?

I have seen so many articles stating open sea as a decentralized market. How can a decentralized market be hacked? If yes, does that mean blockchain is vulnerable.

I think OpenSea is more of a centralized platform with decentralized Transactions over the ethereum blockchain. Therefore it is vulnerable to such attacked

As we improve our technology, hacker finds new ways to exploit us. It's never going to end. Good and Bad walks together.

My point of view would be, don't store your most valuable assets on the online wallet which is riskier. All with your crypto, try to use hardware wallets to store your crypto in large quantity and only transfer some quantity to daily transactions.

Lead Source Image Here

Recent Article
Paypal to enter the crypto world with their new Stable coin " PayPal Coin"

Understand What is NFT

Explaining NFT's to a Amateur [In Detail] and How to take Benefit.

CyberCrypto