Veve NFT Marketplace Closes Down Amid a Cyber Attack

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NFT
Veve NFT Marketplace Closes Down Amid a Cyber Attack

Veve NFT Marketplace has announced that they are down due to an attack. They have confirmed that the attack focused on their Gems. Twitter users had also been complaining of a too sharp decline in the value of their Gems all week long.

Veve NFT Marketplace Suffers an Exploit.

Veve NFT Marketplace, a partner to many large companies like Marvel and Disney, has announced a temporary closure of their operations. The marketplace has been under pressure from social media for the sharp decline of the value of their Gems all week long. They have confirmed that someone had manipulated their systems and was making illegitimate trades of the Gems. Veve NFT Marketplace uses an in-app token, Gems, to trade collectibles. Unlike OpenSea, which uses ETH, Veve requires all traders to use the Gems as the basic trading units. Today, they admitted that they were alerted by some social media users that their Gems may be compromised. The team investigated the matter and stated through Twitter. Their statement read:
“As a result of this exploit, we have closed the Market, Gem purchases, and transfers while we investigate. We will update you on the expected timing of Market opening as soon as we can.”
They also confirmed that they had already restricted the accounts of some of their users pending investigations. The users whose accounts are touched by the freeze will also be contacted.
“Some users have had their accounts restricted while we investigate. We will be getting in touch with those users directly.”

The Story So Far

After Veve confirmed that they are actively investigating some accounts and the facilitated transactions, some people argued that those might be the main suspects. A tweet by niftyswaps.eth read that about 7M Gems were purchased through fraudulent means on the platform. It also stipulated that those who made Gem purchases off the platform may lose their holdings. After the situation blows over, this attack may be the largest one yet that Veve NFT Marketplace has had to deal with since launching. A certain Twiter user shared that the NFT marketplace first experienced its largest three-day buying of the gems only to crash the price by over 50%, which raises eyebrows. Another one lamented having sold his secret rare goofy due panic after it plunged over 80% only to realize the site was under manipulation. Now, the users are waiting for the site to release an official statement that will wholesomely cover the event and explain the way forward following the attack.

Cyber Attacks Challenges the NFT Market

Last year posted worrying signals on the increase of cybercrime in the crypto space where multiple organizations lost fortunes. The streak seems to continue this year and even worsens by touching other innovations like NFT marketplaces. OpenSea was attacked by a phishing scam earlier in the year where fake emails were sent to users asking them to transfer their NFTs. This attack led to the loss of many assets as the destination wallet was corrupt. Rare Bears also reportedly lost over 179 NFTs worth around $800K Now, Veve NFT Marketplace is the latest victim of a cyber attack. Crypto investors can only hope that solutions to safeguard against cyber-attacks be available soonest possible to prevent further losses.
Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.