NFT scams are becoming more frequent in the community. Every day, a new scam appears. Most infamous scams include cash grabs and rug pulling. Projects will appear, be pumped, and then be dumped by investors, leaving them with little to no return on their investment.
But what happens when you wake up and discover that your entire crypto wallet has been emptied out by a thief in the night? The customer service on decentralized platforms isn’t always the best. Peer-to-peer transactions often require peer-to–peer support.
One NFT degen, 0x_fxnction took matters directly to social media. On Tuesday morning @ 1: 30 AM, his wallet was compromised for 2349 Solana ($SOL). That’s roughly $249,651 USD at current market rate. He realized that the job was done and turned to Twitter to share his story. This was not an invitation to an investigation or a party of pity. He wanted to learn from this situation and prevent it happening again to him or anyone else.
How did it all happen? These are the key questions that will answer all your questions.
Why was all the crypto in one wallet?
Most of the funds were DeGods NFT profit meant to help 0x_fxnction buy a house, within intentions to withdraw the following week.
Was he using the wallet to mint?
Actually, no. He used the wallet back in in October, but Phantom had revoked access to random mint sites. This was not enough.
Were the seed phrases compromised?
Not once. The physical copies of the seed phrase that were stored in physical copies were safe and never went online. Multiple wallets that were linked to the seed phrase by Solana also had this same seed phrase. Nothing was stolen.
Did he connect the wallet to some weird site?
On the contrary, 0x_fxnction has been extremely careful about this, but perhaps not careful enough.
So, what exactly happened?
There is speculation that the compromise is due to an old minting site from last year. Phantom may have allowed the site to access the wallet even though it was removed. This could have also been due to “auto-approve”, which are constantly running for speed.
Refrain from using a main wallet to mint. Move your crypto and NFTs to the main wallet even if you use a new wallet.
“Losses are all part of the game,” 0x_fxnction shared via tweet.
That being said, the key is how you bounce back and protect yourself from future losses.
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All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.