Home News Moonbirds NFT Creator Loses $1 Million Quickly After Wallet Hack – What Happened?

James Carter

29 Jan 2023

Moonbirds NFT Creator Loses $1 Million Quickly After Wallet Hack – What Happened?

A phishing attack caused Kevin Rose, CEO of Proof Collective and co-founder of Moonbirds non-fungible tokens (NFTs), to lose tokens worth around $1.1 million. Moonbirds NFTs were stolen from Rose.

Some of the stolen non-fungible tokens (NFTs) include The Currency by the well-known British artist Damien Hirst, one Autoglyph, 25 Art Blocks, one Cool Cat, and nine OnChainMonkey tokens, among others.

The business owner said in a tweet, “I was just hacked.” Stay tuned for details. Please only buy squiggles once we get them flagged. I just lost 25 of them and a few other NFTs (an autograph).”

In a thread that Rose retweeted, Arran Schlosberg, the vice president of Proof Collective, talks about how the hacker took control of the businessman’s non-fungible tokens (NFTs) collection.

Rose was “phished” on the evening of January 25 into signing a malicious signature that let a hacker move a lot of high-value tokens. “Here’s what happened, what we did right away, and what we’re doing now,” Schlosberg said. “This was a classic case of social engineering, where KRO was tricked into thinking he was safe.” The only technical part of the hack was making signatures that OpenSea’s marketplace contract would accept.

The vice president said that when Schlosberg and Rose found out that the hacking attack was aimed at the NFT collection, they used the Revoke Cash Security Tool right away to try to clear approvals.

Schlosberg says, “Unfortunately, it was too late, and the tokens had already been sent in bulk to the hacker.” “Proof Collective’s assets (NFTs, ETH, etc.) are not affected and are not at risk. Most of our assets can only be used with permission from more than one person.

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The vice president of Proof Collective said that the company’s team is working closely with the anti-fraud team from the OpenSea marketplace and wallet expert Ledger to investigate the attack “and are looking at all options, including going to court.”

Moonbirds is a compilation of ten thousand NFTs styled in the manner of profile photographs. Each token has its own one-of-a-kind illustration that is based on an owl, and it also has a number of other unique qualities. Moonbirds NFTs, which were developed by Proof Collective, can be staked in order to earn rewards, which is a term that its developers refer to as nesting. In addition to this, owners of the tokens are granted access to the Moonbirds community both online and in real life when they use their tokens.