Hacker Targets DeFiance Capital Founder, Losing $1.6 Million in Wallet Breach. “Arthur 0x,” the founder of large crypto investment firm DeFiance Capital, claimed in a tweet on March 22 that one of his hot wallets had been hacked, resulting in the loss of more than $1.6 million in nonfungible tokens (NFTs) and crypto.
Arthur 0x has requested that the address be banned due to a compromised private key or seed phrase. Additionally, the community has advised against bidding on or purchasing NFTs from the location. Azuki NFTs that he owned was sold for a low price on the NFT marketplace OpenSea.
“Cirrus,” a member of the NFT community, went so far as to purchase two of the stolen Azuki NFTs and decide to return them to Arthur at no cost. On Tuesday, Cirrus informed Cointelegraph that: “I discovered they had been hacked, and instead of selling them for profit like the other people who had received some of his, I opted to sell them back to him at the cost to assist him.”
Cirrus went on to say that this isn’t the first time anything like this has happened to him. I could easily sell them for 6-8 Ether (ETH) profit, he explained, “but it’s just not right.” His profile says he’s been a victim of rug pulls three times, so his sympathetic nature is understandable.
Rug pulls occur when a crypto or NFT project shuts down unexpectedly and the value of its token or NFT plummets. Rug pulls usually indicate a con.
Arthur appears to have misplaced 78 different NFTs from five different collections, the majority of which are “Azukis.” He also lost 1,578 LooksRare (LOOKS) tokens, 68 wrapped Ether (wETH), 4,349 staked DYDX (stkDYDX), and 68 wrapped Ether (wETH). At around 12:30 a.m. UTC, the hacker began shifting assets, then quickly put all of the NFTs up for auction on the OpenSea market.
As people in the highest echelons of the industry can be attacked, this hack illustrates the importance of operational security when it comes to crypto assets in self-custody. Arthur, for one, is perplexed about how this happened to him, writing in a tweet, “Hot wallet on the mobile phone is clearly not safe enough.
“Scams involving NFTs and cryptocurrencies are always a risk, thus investors should take extra measures with their funds. Serial scammers even develop projects to take advantage of the NFT community, pull the rug out from under them, and move on to the next scam. As Cirrus remarked: “This is a gold rush for hackers and they’re doing everything they can to come up with new ways to take advantage.”
In light of his dissatisfaction and annoyance about the intrusion, Arthur sent a tweet to the hacker, saying, “The only thing I can say to the hacker is: you’re messing with the wrong person.”
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