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HACKERS STOLE NFTS FROM NIFTY GATEWAY USERS
HACKERS STOLE NFTS FROM NIFTY GATEWAY USERS
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‘WE HAVE SEEN NO INDICATION OF COMPROMISE OF THE NIFTY GATEWAY PLATFORM’
By Jay Peters
Mar 15, 2021, 5:53 PM GMT|0 Comments / 0 New
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Illustration by Alex Castro / The Verge
Over the weekend, some users of NFT marketplace Nifty Gateway said hackers stole
digital artwork worth thousands of dollars from their accounts. Some people who
were hacked also said their credit cards on file were used to purchase
additional NFTs, also costing thousands of dollars, which were then transferred
away to a hacker’s account.
Nifty Gateway confirmed in a statement to The Verge that some accounts without
two-factor authentication had been hacked and that it has been in touch with
those affected, but it said it has not seen evidence that its platform was
breached. Nifty Giveaway suggests the hackers may have successfully reused login
credentials that leaked from other services.
“We have seen no indication of compromise of the Nifty Gateway platform,” the
statement reads. “The Nifty Gateway team is communicating with a small number of
users who appear to have been impacted by an account takeover. Our analysis is
ongoing, but our initial assessment indicates that the impact was limited, none
of the impacted accounts had 2FA enabled, and access was obtained via valid
account credentials.”
Over the past few weeks, many NFTs have suddenly become high-value assets;
Grimes sold a series of 10 digital artworks for around $6 million, for example,
and digital artist Beeple sold an NFT for $69 million at Christie’s. So it’s
unfortunately not altogether surprising that NFT platforms have become targets
for hackers looking to steal the digital artworks or take credit card
information to buy more.
WHAT’S AN NFT?
NFTs allow you to buy and sell ownership of unique digital items and keep track
of who owns them using the blockchain. NFT stands for “non-fungible token,” and
it can technically contain anything digital, including drawings, animated GIFs,
songs, or items in video games. An NFT can either be one of a kind, like a
real-life painting, or one copy of many, like trading cards, but the blockchain
keeps track of who has ownership of the file.
NFTs have been making headlines lately, some selling for millions of dollars,
with high-profile memes like Nyan Cat and the “deal with it” sunglasses being
put up for auction. There’s also a lot of discussion about the massive
electricity use and environmental impacts of NFTs. If you (understandably) still
have questions, you can read through our NFT FAQ.
To help prevent future hacks, Nifty Gateway recommends enabling two-factor
authentication. “We encourage our users to enable 2FA that we provide on the
platform and never reuse passwords,” the statement continued. “We have seen some
reports that NFTs involved in these account takeovers were sold in transactions
negotiated over Discord or Twitter. We strongly encourage all Nifty Gateway
customers to purchase their NFTs on the official Nifty Gateway marketplace.”
Given the blockchain-based nature of NFTs, Nifty Giveaway doesn’t have control
of an NFT once it is stolen, so it seems unlikely that the affected users will
be able to recover their lost collections.
RELATED
* NFTs, explained
* The climate controversy swirling around NFTs
* How to set up two-factor authentication on your online accounts
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