Magic Eden confirmed its intentions to refund customers duped to purchase 25 fake non-fungible tokens within 24 hours following the exploit on its marketplace.
Addressing the Fake NFTs Crisis
The pledge to restitute the innocent buyers of the NFTs, estimated to exceed two dozen, seeks to safeguard the marketplace’s reputation.
The update conveyed on January 4 illustrated that the exploit utilized a bug targeting its newly launched activity indexer within Pro Trade and Snappy Marketplace to exclude the fake NFTs from verifications and mirror the genuine NFTs collection.
Magic Eden declared extending the investigations to ascertain if the exploit facilitated the sale of fraudulent NFTs beyond the four collections and the 24 hours.
The preliminary investigation identified two high-priced victims were Solana-based collections – ABC and y00ts. Magic Eden declared addressing the issue by temporarily disabling the vulnerable tools. It added that its development team successfully eliminated the entry points that eased the entry of fake NFTs.
Magic directed customers to “hard refresh” to eliminate the unverified listings from showing up within the browser session. In addition, Magic warned customers to avoid purchasing unverified NFTs.
Also read:The January 4 update assured users of the Magic Eden safety. The marketplace assured refunds to all users who mistakenly invested in unverified NFTs.
Fraudulent NFTs Confirm Breach
The marketplace acknowledged the existence of the fraudulent NFTs via a January 4 tweet. The post referred to complaints from the community who confirmed purchasing fake ABC NFTs. The grievances prompted Magic Eden to install verification layers to address the issue.
The admission by Magic Eden triggered other Twitter users to issue alerts of the fake y00ts NFTs’ presence on the platform. The screenshot captured by the ABC creator HGE indicated two sales estimated at 100 Solana.
DeGods involved in y00ts creation echoed the HGE update warning the followers of the massive exploit in the Magic Eden. Its occurrence facilitated the infiltration of NFTs into the marketplace collection.
Second Breach Makes Magic Eden Security Questionable
The presence of fake NFTs within the Magic Eden marketplace is the second instance of the breach this week. Magic Eden had on January 3 admitted the flooding of the platform with pornographic images.
The marketplace attributed the breach to a third-party contracted to host images whose systems were compromised. While Magic Eden confessed the presence of unsavoury images, it restated the NFTs’ safety. However, the assurance was short-lived as the marketplace suffered a breach that allowed the purchase of fake NFTs.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.