Premint, a leading NFT platform, on Thursday completed refunding its subscribers who fell victim to the July 17 exploit. The protocol did the revelation in a tweet shared on his verified handle. According to Premint, he gave more than 310Ξ to subscribers who allegedly lost NFTs due to the incident.
More so, the NFT protocol revealed that it gave 7Ξ to users who had lost their ETH due to the crisis. Premint went further by sharing a link that shows details of all refunds made.
Premint had, on July 17, promised to compensate all the victims concerned. In last week’s message, protocol urged all affected victims of exploitation to insert their portfolio details in a particular document.
Similarly, Brenden Mulligan, CEO of Premint, announced that the protocol had hired a third-party agent to help perform on-chain analysis of the security breach. According to Mulligan, Premint worked with the third party to compile a list of all affected users.
Notably, the NFT protocol reportedly suffered a security breach in mid-July. As revealed, the exploit took place after a hacker compromised the protocol’s website. Then the hacker deployed malicious JS code on the project’s official website.
Apparently, the hacker consequently tricked all unsuspecting users of the platform into using the phishing link. However, some users who suspected the phishing link took to Twitter and Discord to educate others against the prey, but it was already late as few had become vulnerable.
This security flaw allowed the hacker to access victims’ wallets, taking away large amounts of funds. According to Premint, the mining resulted in a loss of approximately $400,000.
Additionally, the NFT registration protocol describes the victims of the attack as a “relatively small number of users”. Premint claimed that Etherscan, an analytics platform for Ethereum, allegedly linked more than four wallet addresses to the hack.
Similarly, a blockchain security pioneer, Certik, said hackers siphoned around 314 NFTs from Premint. According to CertiK, the stolen protocol tokens were tokens from popular projects like Bored Ape, Goblintown, and Otherside.
As noted, the hacker returned the stolen assets to OpenSea. According to a report by Certik, the exploiter sold around 302 NFTs for 275 ETH, equivalent to $400,000, while retaining 18 tokens. More so, the blockchain security firm hinted that the hacker transferred the 275 ETH to Tornado Cash, a decentralized mixing protocol. This, as revealed, was done to hide all the details of the transaction incurred.
Lately, crypto experts have been calling for an outright ban on crypto mixers. They claim that the technology generally paves the way for hackers to siphon off funds without leaving a trace. According to a 2022 Chainalysis report, more than 10% of all stolen cryptocurrencies are typically transferred to mixers.
The report added that approximately $600 million worth of crypto was lost to crypto mixing services in the second quarter of 2022. According to Financial Crimes author Jefferey Robinson, crypto mixers operate as a catalyst for illicit operations, including money laundering. He urged relevant authorities to ban the use.
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