NFT crypto scams are happening more and more frequently in the community. It seems like every other day a new scam pops up. The rug pulls and cash grabs are the most infamous schemes. A project will pop up, get pumped and then dumped, leaving most investors with no ROI.
But what happens when you wake up and discover that your entire crypto wallet has been emptied out by a thief in the night? Decentralized platforms aren’t exactly known for their outstanding customer service. As a result, peer-to-peer transactions sometimes call for peer-to-peer support.
One NFT degen, 0x_fxnction took matters directly to social media. On Tuesday morning @ 1: 30 AM, his wallet was compromised for 2349 Solana ($SOL). That’s roughly $249,651 USD at current market rate. Realizing that what’s done is done, he turned to Twitter to share his story in a brief thread. This was not a call for an investigation nor a pity party. He hoped to learn from the situation so it doesn’t happen to him (or anyone) again.
So how did this all come about? A few key questions hold all the answers.
Why was all the crypto in one wallet?
Most of the funds were DeGods NFT profit meant to help 0x_fxnction buy a house, within intentions to withdraw the following week.
Was he using the wallet to mint?
Actually, no. He used the wallet back in in October, but Phantom had revoked access to random mint sites. Still, this wasn’t enough.
Were the seed phrases compromised?
Not once. All physicals copies where the seed phrase was stored were secure and have never been online. Additionally, multiple wallets with Solana were connected to that seed phrase and nothing was stolen.
Did he connect the wallet to some weird site?
On the contrary, 0x_fxnction has been extremely careful about this, but perhaps not careful enough.
So, what exactly happened?
There is speculation that the compromise is due to an old minting site from last year. The site may still have gotten access to the wallet despite Phantom’s revoking. This could also have been a result of “auto-approve” mints, which happen all the time for speed purposes.
Refrain from using a main wallet to mint. Even when using a new wallet to mint, move your crypto and NFTs back to the main wallet.
“Losses are all part of the game,” 0x_fxnction shared via tweet.
That being said, the key is how you bounce back and protect yourself from future losses.
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All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.