OpenSea Phishing Attack Causes Concern in Hot NFT Market

The recent phishing attack against OpenSea, a crypto-collectable marketplace has caused concern in the market. The company announced that they have been able to secure all funds and no customer data was compromised. Nonetheless, this is yet another reminder of the importance of maintaining good security practices when dealing with cryptocurrencies.

The “nft buy” is a tool that allows users to purchase NFTs on the OpenSea marketplace. Recently, there has been a phishing attack which caused concern in the market. The OpenSea team has released an update to fix this issue.

This article first appeared on Crowdfundinsider.

According to tweets from the firm and its CEO, OpenSea is investigating an assault on its platform that looks to be a phishing operation. OpenSea said yesterday that a phishing scheme had led 32 users to sign into a malicious payload from an attacker, and that some NFTs [non-fungible tokens] had been stolen as a result. Some of the stolen NFTs have been sold for as much as $1.7 million. OpenSea is the world’s largest NFT marketplace, supported by some of the most well-known venture capital firms.

“We’re continuing to examine reports of a phishing attempt originating outside of OpenSea,” reads a warning on the OpenSea website. Outside of opensea.io, do not click any links.”

According to Devin Finzer, CEO of OpenSea:

“Using opensea.io to mine, purchase, trade, or list things is not a vector for the attack.” Signing the updated Wyvern 2.3 smart contract, in particular, is not a vector for the attack.”

OpenSea warned users on Discord that it would NEVER approach you through DM to request ETH in exchange for verification, a blue check mark, or other similar reasons! Please report the sender to Discord: [email protected] if you are approached about this.

While the phishing effort seems to have had a modest effect and will most likely be recovered, the assault highlights the need for the digital asset industry to better monitor frauds and for consumers to be more alert that things are not always as they seem. Not only platforms and users are rattled by events like these, but regulators and politicians are as well, who are constantly eager to rescue people, mainly from themselves.

A thread on Twitter from at least one VC suggested that becoming engaged in the red-hot NFT sector, which has gone from near nothing to stratosphere in a short period of time, should be approached with care.

I’m not going to become significantly engaged with NFTs after this; there’s just too much risk.

It’s a hot mess & the experts have no idea what’s happening. That’s terrifying, we’re talking real money.

February 20, 2022 — Brandon Brooks (@OfficialBBrooks)

Others mentioned smaller frauds, and others drew a comparison to the initial coin offering (ICO) craze, which eventually ended in misery and tears.

Rapid expansion in a new business might lead to a haste to provide products and services that, regrettably, may cut too many corners. While digital asset collectibles seem to be here to stay, it appears that now is a good moment for the sector to band together and form a self-regulatory organization that establishes best practices and transparency criteria before the government come in and do it for them.

As an example:

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  • nft trading platform
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