Some OpenSea users were startled to learn that their NFTs had been taken a few days before; this incidence sowed widespread dread and mistrust, resulting in a fall in activity over the preceding few days.
At OpenSea, the Great NFT Heist
On February 19, 2022, millions of dollars worth of NFTs were stolen from OpenSea wallets, totaling 254 tokens. The world struggled to make sense of what had occurred in the aftermath, and OpenSea administrators took to Twitter to explain and share facts.
According to OpenSea, the attack lasted around three hours and resulted in the injuries of seventeen persons. Following the attack, online allegations began to swirl, with some newspapers claiming that NFTs worth up to $200 million had been stolen. OpenSea CEO Devin FInzer took to Twitter in the early hours of February 2022 to explain that the value of NFTs seized is nothing near the $200 million stated.
Finzer estimates that the perpetrator of the crime had around $1.7 million on February 20, 2022, which he acquired via the sale of a handful of the stolen NFTs. The team of OpenSea maintains that neither its website, listing system, or hosted banners were hacked or utilized as a vector for the attack.
The NFT heist was carried out in an orderly manner. This might signal that marketplaces and other important participants in the NFT space still have a long way to go in terms of supporting consumers and retail investors in preserving their money correctly.
The hackers attempted to contact a huge number of potential victims through bogus emails. The emails convinced recipients to sign digital communications with their wallets, unknowing that by doing so, they were granting the hacker a transferable license to their assets.
Mintable, a marketplace for NFTs, purchased a small amount of NFTs from the Azuki project and distributed them to people whose Azuki Avatars had been stolen. Zach Burks, CEO of Mintable, was critical of OpenSea’s apparent lack of care for its consumers. Mintable has been in the news for all the right reasons in recent weeks as a consequence of its humanitarian endeavor.
Due to the company’s size, the disclosure of theft tied to its platform aroused widespread alarm and confusion among investors and industry watchers. According to Dapprader.com, the total trading volume of NFTs decreased significantly in the week after the heist.
The decline in trading volume was most pronounced on OpenSea, where the seven-day trading volume fell by more than 37%. The total number of OpenSea traders decreased by 19 percent, while LooksRare’s trading volume decreased by 65 percent. BloctoBay, an interesting NFT marketplace, had a week-over-week surge of 215 percent.