NFT User Exploits Loophole to make 347 ETH on OpenSea

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Blockchain NFT
NFT User Exploits Loophole to make 347 ETH on OpenSea

An OpenSea user has exploited a bug on the non-fungible token (NFT) marketplace to snag several items worth hundreds of Ether (ETH) from owners of well-known collections like Bored Ape Yacht Club (BAYC) and Cyber Kongs. The bug allowed the user to purchase NFTs at previous listing prices far lower than their current prices.

Arbing Nets Users $760,000 on OpenSea

On-chain security outfit PeckShield has revealed a critical bug in the code deployed by popular NFT marketplace OpenSea. The bug appears to be associated with the listing mechanism leveraged by the platform and has allowed a user to gain some 347 ETH by buying some NFTs at previous listing prices on different marketplaces.

PeckShield published a tweet on Monday, January 24, 2022, tagging the bug as a front-end vulnerability issue. Also a few hours before the security firm’s tweet, some Twitter users discovered that a plethora of NFTs from OpenSea previously listed for significantly lower prices on the Rarible marketplace were bought up.

The culprit allegedly exploited the difference in the prices on both platforms to make profits by deploying a process similar to arbitrage trading.

Several Twitter users have lodged complaints and asked OpenSea for a resolution. One particular user ironically called “mrcriminal1” claims to have lost a Mutant Ape NFT and a minimum of 16 ETH.

Collections reportedly targetted by the exploiter include the highly rated Bored Ape Yacht Club, Mutant Ape Yacht Club (MAYC), and Cyber Kongs. However, as of the time of writing this report, the full scope of collections affected on OpenSea and Rarible remains unclear.

Furthermore, commentary from other users suggests that the issue also stems from holders failing to cancel their old listings on both platforms. These users also indicated that Rarible has previously warned against attempting to scrap previous listings by transferring assets between wallets.

Another member of the NFT community has also pointed out a Rarible tool built to help users effectively cancel all old listings and protect themselves from being exploited.

NFT Space Growing Despite Crypto Market Drop

Despite the recent decline in prices across the cryptocurrency market, the NFT industry continues to make a strong start to 2022. NFT marketplace OpenSea reportedly raised $300 million in a Series C funding round led by investors from Coatue and Paradigm. The funds raised also boosted the platform’s market valuation to a whopping $13.3 billion.

BTCManager reported that NFT marketplaces experienced significant growth in trading volumes as well. LooksRare, a potential competitor to OpenSea, recorded a staggering 100000% growth in transactions during the first week of its launch. The NFT marketplace also launched its token and airdrop for OpenSea users.

Anthonia Isichei

A graduate of English, She stumbled on cryptocurrency while trying to proofread an article for a friend back in 2011, and since then, She has been hooked! She loves to play word games and tennis.