The founder of DeFinance Capital has lost more than $1.6 million in NFTs and crypto in a hot wallet hack. Arthur_0x revealed the incident in a tweet. He is not sure of what happened and had not expected this is to happen.
The crypto investor urged the community not to bid or buy any of the stolen NFTs from the address. But some of the Azuki NFTs were sold quite cheaply on OpenSea, a popular NFT marketplace.
Arthur_0x has been analyzing the attack. He found that the hacker was able to access another hardware wallet on his system. This means that the incident is not a MetaMask mobile or OS issue as the hacker(s) would have different private keys. The founder said he isn’t even sure as to how he can persuade most normal people to put a great amount of their net worth on-chain anymore. Arthur_0x noted highlighted that he himself, being an experienced DeFi user has now been attacked.
The hacking, once again, shows the risk of using hot wallets. Moreover, there is a similar hacking or phishing attack every week. And it is happening at an alarming frequency. Attacks have been increasing as more and more investors come into the growing NFT market.
Experts point out that cold wallets offer a much higher level of security but it’s meant for long-term storage of assets. Hacking incidents leave a far-reaching and deep consequence. It also deters investors from injecting their money into digital assets.