Unfortunately, another scam took place in the NFT space where NFT veteran Todd Kramer had his $2.2 million NFT collection stolen from his wallet.
Positively, OpenSea froze the stolen assets after the theft was reported.
Let’s see how the scam happened and should you be worried now?
Todd Kramer and NFT thefts
Todd Kramer’s account links to the Ross + Kramer Art Gallery in New York. Yesterday, the veteran posted a series of tweets where he announced that 16 NFTs had been stolen from his hot wallet. Moreover, Kramer also pleaded OpenSea and NFT community for help.
Additionally, Kramer provided a list of his stolen assets. These include one CloneX, seven Mutant Ape Yacht Club NFTs, and eight Bored Ape Yacht Club NFTs.
On the other hand, some traders questioned if OpenSea is really a decentralized platform after they froze the stolen assets. Twitter user @kw.sol wrote “Who was able to freeze them? Feels pretty anti-crypto to be asking third parties to do this and ideally they shouldn’t be able to.”
Currently, Kramer has little means of recovering stolen NFTs, but his experience emphasizes the importance of solid operational security (Opsec) as a cryptocurrency trader or NFT collector.
What is a hot wallet?
Basically, a hot wallet is a type of cryptocurrency that is connected to the internet – majorly MetaMask– when the device is installed. Correspondingly, Kramer lost his assets when he clicked on a malicious link. As a result, the hackers gained access to his hot wallet.
Clearly, a hot wallet is not as safe as a hard wallet. For the uninitiated, a hard wallet is a crypto-wallet that does not connect to the internet; the device is manually plugged in each time. Furthermore, each transaction asks for approval which can only be done by the owner using physical buttons.
NFT Phishing Scams
On December 26, NFT collector bergpay.eth followed the same fate as Kramer when five jungle freaks and two sandbox NFTs were stolen from the Ethereum wallet and the ENS domain was transferred to a new address. Said that.
On November 30, Friesframe’s Twitter account summarized the frustration that NFT owners can overcome when they discover that their favorite item has been stolen from a hot wallet.
OpenSea has never frozen NFTs from bergpay or friesframe.
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This article is educational material.
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