Hacker Stole $1.7 Mln Worth of NFTs From The Founder of DeFiance Capital

DeFiance Capital founder, Arthur CHEONG, lost 78 NFTs from five collections, mostly from the Azuki series. In addition, the hacker stole 68 WETH tokens, 4,349 stkDYDX tokens, and 1,578 LOOKS tokens. The hacker immediately put all the NFTs up for bid on the OpenSea NFT marketplace. At the time of writing, the hacker has 589 ETH in his wallet, worth about $1.77 mln.

The crypto community supported the CEO of DeFiance Capital and began helping to return the funds and identify the hacker. The community agreed to blacklist the hacker's wallet. An NFT collector named "Cirrus" purchased two stolen Azuki NFTs and said he would return them to the head of DeFiance Capital at cost.

This attack highlights the importance of operational security in self-custody of crypto assets, as even people in the upper echelons of the industry can be attacked. Previously, Arthur Cheong tweeted that the hot wallet on the phone is indeed insecure. However, he believes that the security breach was due to a transaction he made on the network that could also compromise the seed phrase or private key from the hardware wallet.

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