Hackers Steal $1.7 Million in NFTs from OpenSea Users

FEB 20 2022·Updated JAN 3 2023

Story

Image credit: Getty Images [via Vice News]

The Facts

Hackers stole an estimated $1.7 million in NFTs, or non-fungible tokens, from users on the crypto-trading platform OpenSea on Feb. 19.
Business Insider
They did so by exploiting the Wyvern Protocol, the open-source standard underlying most NFT smart contracts. OpenSea victims authorized partial contracts which could later be altered, allowing the hackers to transfer NFT ownership without payment.
Business Insider
PeckShield, a blockchain security service, counted 254 tokens stolen in the 3-hr attack. OpenSea CEO Devin Finzer said 17 users were affected.
Verge
The theft was small in comparison to recent attacks on the emerging decentralized finance (DeFi) space, such as a $322 million hack on the Wormhole platform on Feb. 2.
Business Insider

Sources Split

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ESTAB

The Spin

Narrative A

While this theft is small compared with recent high-profile hacks, a report from Chainalysis found that criminals stole an estimated $14 billion in cryptocurrencies in 2021 – an 80% rise from the previous year. If the security issues in this market persists, it could stifle mainstream adoption of this technology.

Business Insider

Narrative B

The popularity of NFTs has skyrocketed in the last several years, growing in market size from $106 million in 2020 to $44.2 billion in 2021. It's only natural that a rise in crime proceeds. This doesn't mean the DeFi space shouldn't be used, though; platforms simply need to take a more stringent approach to security.

Bitcoinist