The company said that the hacker took 197 NFTs after gaining access to its treasury wallet.
Several non-fungible tokens (NFTs) from LiveArtX’s Meta-morphic: Seven Treasures Collection were stolen early on Monday.
The 197 NFTs were moved to a wallet with the address “0x5f7848EC0286304DC5FE6497AF4B3C0FeaD6A920” by the exploiter after gaining access to the platform’s treasury wallet. He then started selling the NFTs for significantly less than their quoted pricing, violating the collection’s floor price.
From one ether (ETH), or about $1,300, to 0.1 ether, or $130, the cost of the collection decreased. According to LiveArtX, the stolen NFTs have been frozen, and the company is trying to find the assailant. Additionally, the business said on its Discord channel that it will compensate purchasers of the stolen NFTs.
According to LiveArtX, the exploit appears to have happened when someone obtained the secret key to the Seven Treasures collections and was able to sell every NFT as a result. Similar to a password, a private key is a secret number used in blockchain technology that enables its holders to view, transfer, and modify data about the tokens of that private key.
Members of the team said that after the incident, the smart contract was changed, rendering the hacked private key invalid and preventing customers from buying or selling the NFTs that are now available on OpenSea.
LiveArtX said in a statement on the Discord server that it had not taken the necessary precautions to prevent the assault. “The Treasury wallet and the operations wallet were combined. For the Treasury wallet, we failed to develop a multi-sig method. More than one team member received the secret key, “members of the team wrote in the communication.
The platform collected $4.5 million earlier this year from well-known cryptocurrency investors including Animoca Brands, BNB Chain Fund, and KuCoin, Alameda Ventures. NFTs are blockchain-based digital assets that reflect ownership of tangible or intangible goods.
Numerous vulnerabilities and hacks have been used against the cryptocurrency community; the most recent one targeted the decentralized exchange Mango and stole $117 million worth of cryptocurrency. Later, the exploiter publicly justified the assault and gave back $67 million. Chainalysis, a blockchain detective, claims that October has already been the worst month for cryptocurrency attacks.
