A Hacker Used Loopholes To Steal NFTs Worth $12 Billion By Exploiting Loopholes In The System
As reported in a recent report about NFT fraud, hackers exploited a variety of loopholes to steal $12 billion worth of NFTs in 2021.
NFTs, or non-fungible tokens, have gained popularity over the past couple of years due to their non-fungibility.
As a result, ownership of an NFT is essentially recorded on a blockchain that is associated with a physical or digital asset that can be sold and traded in the open market.
Despite the fact that the industry is already struggling with cybersecurity issues, a report published by London-based blockchain analytics firm Elliptic has highlighted how loopholes in the process have been exploited by hackers in order to steal millions of dollars worth of NFTs.
There is a new report released by NFT titled NFT Report 2022 that outlines the dangers facing the decentralized finance (Defi) industry as well as suggests ways to avoid them. The report was released on 26 August and is available online.
As a result, the report found that between 2020 and 2021, the Defi industry lost $260 million as a result of thefts across the NFT and NFT-Defi protocols.
Axie Infinity, an NFT-based Defi gaming application developed by a North Korean group called Lazarus, was recently hacked by a group known as Lazarus which is located in North Korea.
Approximately $540 million worth of crypto was stolen, making it the second-largest attack in terms of the amount of value that was stolen.
It is well known that hackers are able to exploit different vulnerabilities in terms of security in order to steal millions of dollars worth of assets.
They have been known to use various methods such as contacting developers on social media under false pretenses before stealing their information and exploiting NFT airdrops and marketplaces with weak coding to steal user information.
It has been suggested in the report that: “There is always the possibility that a malicious individual can uncover a loophole, vulnerability, or faulty function within the layers of code necessary for a Defi platform to run efficiently.
“Auditing a code before it interacts with a user’s funds is therefore considered to be a good practice before it interacts with their funds.