On September 25, Falovitch tweeted "I got hackled last night on Opensea. Apes, doodles, eth. It's not pretty." Four NFTs had been stolen from his wallet — two Doodles, and a Mutant and Bored Ape – along with 6 ETH (~$7,750). The Mutant and Bored Apes were both resold, for 15.99 ETH (~$20,700) and 82.69 ETH (~$107,000) respectively. Factoring in Doodle floor prices, the hacker is looking at at least $150,000 in profit.
The loss, however, is larger for Falovitch, who spent ~$377,000 on the four NFTs based on the price of ETH at the times of purchase. Falovitch tweeted after the hack, "Now I’m over $1M hacked in ETH and NFTs." It's not clear if he's referring to other wallets he may control that were compromised, previous hacks he's suffered, or if he's massively overestimating the value of the stolen NFTs. He also tweeted that he discovered his car was broken into as he went to drive to the police department to report the NFT thefts.
Well-known crypto researcher zachxbt, who is known for helping victims of wallet hacks recover their assets, tweeted to Falovitch: "Karma for all of the people you rekt with the scams promoted on your Instagram page. Definitely won't be tracking this one."
0xdeadbeef52aa79d383fd61266eaa68609b39038e(beginning with deadbeef), or one with lots of 0s at the end, or some other address the user thinks looks cool.
However, because of the way the Profanity tool generated addresses, researchers discovered that it was fairly easy to reverse the brute force method used to find the keys, allowing hackers to discover the private key for a wallet created with this method.
Attackers have already been exploiting the vulnerability, with one emptying $3.3 million from various vanity addresses. 1inch wrote in their blog post that "It’s not a simple task, but at this point it looks like tens of millions of dollars in cryptocurrency could be stolen, if not hundreds of millions."
The maintainer of the Profanity tool removed the code from Github as a result of the vulnerability. Someone had raised a concern about the potential for such an exploit in January, but it had gone unaddressed as the tool was not being actively maintained.
Researcher zachxbt alleges that teenager who stole crypto worth $37 million in 2020 is responsible for a spate of crypto-related Twitter hacks
Now, crypto investigator zachxbt thinks the same individual is indirectly responsible for a slew of compromised Twitter accounts that have then been used to promote crypto scams, including those of Beeple, DeeKay, and others. According to zachxbt, he has been selling access to a Twitter admin panel, which allows employee-level access to Twitter tools. This might explain how many of the accounts were compromised despite being protected by multi-factor authentication. According to zachxbt, "It’s still unclear as to how Redman gained access to the panel to make elevated requests & reset passwords. As of now it appears the method stopped working".
Bribe Protocol was incubated by Advanced Blockchain AG and Composable. Composable might ring a bell, because in February its pseudonymous head of product, 0xbrainjar, was revealed to be Omar Zaki, who had settled with the SEC over charges that he had misled investors while operating an unregistered investment advisement company and hedge fund. At the time, he wrote that "I do not want a mistake in my youth to cloud all of the team's efforts", though the SEC charge was filed less than three years prior, when Zaki was 21.
An employee of Figment Capital, one of the investors in Bribe Protocol, claimed that the project had formally shut down and returned 86% of the funds raised from institutional investors, though "retail took a huge L". However, this doesn't appear to have been publicly announced by the project.
ASEC_APE had just purchased the four NFTs between July 15 and August 13 for a combined total of 326 ETH (~$532,000 based on ETH prices at the time of each purchase; ~$631,000 at the price on the day of the theft).
One of the stolen NFTs, Bored Ape 9012, had just been stolen a week before from Cameo CEO Steven Galanis when his wallet was compromised, as were a handful of other pricey NFTs. ASEC_APE had purchased it from the person who purchased it from the hacker shortly after the August 6 theft.
"Animate your Bored Ape" scammers linked to more phishing attacks amounting to more than $2.5 million
- "Scammers In Paris", Investigations by ZachXBT
However, that was not the address that CoinGape published in their article titled "Breaking: Nomad Announces ENS Address And Bounty For Returning Funds" article, which was syndicated to Binance's news feed. Instead, they indicated that people should send funds to a different address, a scammer who had been sending on-chain messages to various people who took money out of Nomad during the exploit, asking they return it.
Although CoinGape removed the article fairly quickly, it remained live on Binance's site for over an hour. Fortunately, it doesn't appear anyone besides the writers have fallen for the scam, as no cryptocurrency has been sent to the address.