Quick take:
- The hacker transferred 197 Seven Treasures NFTs out of LiveArtX’s treasury wallet.
- The NFTs were then sold at much lower prices than their previous listed values.
- The Seven Treasures NFT floor price has fallen by more than 80%.
NFT platform LiveArtX today reported that its treasury wallet was compromised by a hacker, resulting in 197 NFTs from the platform’s Seven Treasures NFT collection being stolen.
The NFTs were transferred by the hacker to the wallet address “0x5f7848EC0286304DC5FE6497AF4B3C0FeaD6A920” and were then sold at a large discount from their previously listed prices. The floor price of the collection fell over 80% from 1.14 ETH as of Oct 15 to 0.2 ETH on OpenSea as of this writing.
According to NFTGo, the market capitalisation of the Seven Treasures collection tanked 51% over the last 24 hours while the collection’s transaction volume surged by 463%, likely as a result of the NFTs being transferred by the hacker.
The wallet was compromised after the hacker got hold of the private key of the Seven Treasures NFT collections. The LiveArtX team said that the wallet’s smart contract was updated following the exploit, making the private key invalid. Users will not be able to buy or sell the Seven Treasures NFTs on OpenSea.
LiveArtX admitted its oversight in a message on Discord, saying: “We did not separate the operation wallet from the Treasury wallet. We failed to implement a multi-sig mechanism for the Treasury wallet. The private key was passed on to more than one team member.”
The platform also tweeted that the team is doing all they can to“resolve the issue with the compromised wallet” and “will keep the community updated.”
Headquartered in New York, LiveArtX raised $4.5 million in an initial coin offering round in March led by Animoca Brands, BNB Chain Fund and KuCoin.
According to blockchain data platform Chainalysis, October is the “biggest month in the biggest year ever for hacking activity” as “$718 million has been stolen from DeFi protocols across 11 different hacks.”
1/ After four hacks yesterday, October is now the biggest month in the biggest year ever for hacking activity, with more than half the month still to go. So far this month, $718 million has been stolen from #DeFi protocols across 11 different hacks. pic.twitter.com/emz36f6gpK
— Chainalysis (@chainalysis) October 12, 2022
The most recent exploit to make headlines was when a hacker stole over $100 million from Solana-based Mango Markets Exchange last Tuesday. Mango DAO, the decentralised autonomous organisation that governs the exchange offered the hacker a $47 million bounty in exchange for $67 million worth of tokens to be returned to the platform.
Prior to that, the DAO were debating on how to proceed while the exploiter proposed his own solution, telling Mango DAO that they would return the tokens if the Mango community agrees to use 70 million USDC from its treasury to repay a “bad debt” from a bailout of fellow Solana platform Solend.
With the bounty deal, Mango DAO could use the recovered tokens to pay off bad debt and avoid a criminal investigation into the hacker. The exploiter outed himself on Oct 15 and returned $67 million to Mango. The DAO will vote this week on how to divvy up the returned tokens.
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