The token was briefly listed on OpenSea, Rarible, and various other marketplaces before those marketplaces took it down. However, because it was minted on the blockchain, the token itself cannot be removed. "It's very much an experiment...to find ways to make content indestructible," said Raphael Gluck, a co-founder of a jihadist research group.
Islamic State tests out NFTs
- "Islamic State Turns to NFTs to Spread Terror Message", The Wall Street Journal
Crypto scam watchdog group launches NFT project, which is then exploited
Ironically, a flaw in the project's smart contract allowed individual wallets to mint many NFTs at once, rather than one per wallet, allowing two people to game the system and snap up more than 450 NFTs rather than the one they were allowed. Rug Pull Finder wrote that "An exploit was shared with us 30 minutes before mint went live. After reviewing it with 3 different dev teams, we did not believe the credibility of the information sent to us... We were clearly wrong, and we are truly truly sorry".
Rug Pull Finder announced that they had reached an agreement with the people who gamed the mint, and would buy back the 366 NFTs the duo still held for 2.5 ETH (~$4,000).
Crypto security researcher OKHotshot wrote, "I think its concerning when security minded projects like RugPullFinder get their discord breached and their code exploited yet they're offering those exact services to customers."
Georgian Coinbase customers take advantage of 100x price bug
Some users who took advantage of the bug and withdrew funds to their bank accounts found their accounts frozen shortly after, when Coinbase noticed the error and began working to claw back the funds. According to Coinbase, about 1,000 users took advantage of the error.
Attacker exploits bug in ShadowFi to empty $300,000 liquidity pool
The project had only just launched that same day, after running a presale of their SDF tokens. The project promised to allow people to "Take your spending away from the floodlights of surveillance capitalism" and apparently involves sending people prepaid Visa cards to help them cash out their cryptocurrency without connecting a bank account or providing KYC information.
Holding company for Mercado cuts 15% of employees
Describing the layoffs, a spokesperson for 2TM said that Mercado was suffering for playing by the rules. "The competitive environment remains deteriorated and unfair, lacking the approval of the legal framework for crypto-activities, as players following the law are penalized by companies that ignore local rules."
dYdX infuriates users by requesting "liveness checks" via webcam, cancels campaign due to "overwhelming demand"
This infuriated many crypto users, who were horrified that dYdX would try to collect this kind of biometric data. "DYDX just nuked itself. I would never use this platform," wrote a prominent trader.
On September 1, dYdX tweeted that "Due to extremely overwhelming demand of the $25 deposit bonus promotion, we are ending the campaign, effective immediately. Thank you to the many thousands of new users that onboarded to dYdX today. We truly underestimated the amount of interest the campaign garnered." They made no mention of the backlash against the liveness checks, but quietly removed the mentions of the system from their website.
Bill Murray's NFT charity auction nets $185,000, which is then immediately stolen
However, hours after the auction, a hacker gained access to Murray's crypto wallet and snagged the ETH for themselves. They also attempted to steal 800 NFTs from the remaining collection by Bill Murray, though a wallet security team was able to safeguard those NFTs in time.
Murray's team confirmed the theft, and said they are working with the police and Chainalysis to identify the hacker.
Attackers steal around $265,000 of user funds from KyberSwap exchange
Kyber identified and remedied the issue after two hours of investigating it, and only two wallets were affected. Kyber promised to compensate the users who lost funds, and also tried to tempt the hacker into returning funds by allowing them to keep 15% of the stolen money as a "bounty" (~$40,000).
Snapchat abandons its web3 plans
This news came amidst the announcement that Snap would be laying off 20% of its staff, a whopping 1,300 people.
- "Snap to 'sunset' web3 team in company restructuring", The Block
- "Snap explores plans to let users showcase NFTs as filters", Financial Times
Unable to recover from the April Rari exploit, Babylon Finance shuts down
Since April, Babylon tried to recover from the hack. However, they described it as "the domino that kickstarted a series of unfortunate events". Rari canceled their planned reimbursement, users withdrew their funds from Babylon Finance, the Fuse pool on Rari was abandoned, and the token price decreased from around $20 to around $5.
On August 31, Babylon Finance's founder Ramon Recuero published a blog post announcing that Babylon would be shutting down. They promised to distribute the remaining project treasury among holders. Users were told to withdraw their funds by November 15.
- "Babylon Finance is shutting down", Ramon Receuro