Bored Ape Owner Falls for JPEG Scam, Loses $570K Worth of NFTs

Bored Ape Owner Falls for JPEG Scam, Loses $570K Worth of NFTs

The NFT collector received an offer he couldn’t refuse, which was, unfortunately, too good to be true. 

Digital collectibles have been plagued with malicious activity ever since they’ve become highly-valued assets. In this case, one user was tricked into thinking he was getting more out of the NFT transaction, but came out with nothing.

Based on a wall of tweets posted by a BAYC collector named 0xQuit, a user going by the nickname "s27" had his "Bubble Gum" Bored Ape and several Mutant Apes stolen through an NFT swapping platform called KiwiSwap.

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Quit explained that he received a notification on Discord that a Bored Ape was sold below the floor price, essentially meaning that the owner "panic sold" it due to price fluctuations, or the user got hacked.

However, it became clear that his NFT got fished out on KiwiSwap because of a simple design flaw in the platform’s UI. The scammer used the flaw and made the #1584 Bored Ape owner trade his NFT for a bunch of counterfeit ones.

It wasn’t the first time that someone fell for a similar scam. Another user replied to the post, claiming that his Mutant Ape Yacht Club (MAYC) NFT was stolen in the exact same way, only on another DeFi protocol called VeraSwap.

With that being said, the most prevalent scams surrounding the NFT market have been rug pulls. Just about a week ago, the Bored Bunny NFT collection was exposed as a "slow rug" as the owners snatched approximately $21M from investors.

Dom Z. - Crypto Analyst

by Dom Z. - Crypto Analyst, BitDegree


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