Phishing Attack on OpenSea Triggers Trading Drop

According to DappRadar statistics, OpenSea trading activities plummeted by 37% to roughly $660 million. Additionally, the number of traders on the largest NFT platform decreased by over 20% to a little over 220,000. OpenSea’s Trading Activities Drop This major trading activity drop can be caused due to the effect of the recent heist on OpenSea. The attacker successfully imitated an OpenSea email inviting users to move their NFTs to a newer smart contract. The fraudulent e-mail by the hacker caused 254 tokens to be stolen from OpenSea’s users. The attacker’s email smart contract duped the original holders into transferring their digital token to him for 0 ETH. Some of those assets have now been sold, resulting in a sizable profit for the culprit. Around 17 traders signed the contract, which served as a blank cheque, granting the hacker access to all NFTs kept on their wallets. As per Devin Finzer, OpenSea’s chief executive, the attack resulted in a loss of $1.7 million. However, studies from independent research estimate the loss between $2 million and $3 million. As per the data from blockchain security provider PeckShield, the stolen NFTs included four Bored Apes, out of which three were sold on LooksRare, a competitor platform for a total value of US$667,000. One of the phishing attack victims, Timothy McKimmy alleged OpenSea of negligence due to which he lost a Bored Ape Yacht Club NFT. McKimmy wants the court to order reim...