$10.5 Million in nonfungible tokens (NFTs) and coins have been stolen in an unidentified exploit that targeted experienced members of the cryptocurrency community. The exploit has been draining wallets since December 2022, and over 5,000 Ether has been stolen. Despite the extent of the losses being undetermined, the exploit has caused a significant concern within the crypto circle.
MetaMask developer Taylor Monahan revealed that the exploit is different from usual phishing attempts or random scammers as it targets experienced members who are knowledgeable in safeguarding their digital assets. The exploit targets keys created from 2014 to 2022 and those who are more “crypto native.” These individuals are those who have multiple addresses and work within the space.
To avoid the possibility of their assets being compromised, Monahan advises those with their assets in a single private key to migrate their funds, split up their assets, or use a hardware wallet. Community member Jacky Goh echoed the sentiment and stated that using a hardware wallet is the best solution for keeping funds safe.
Kaspersky, a cybersecurity and anti-virus provider, detected over 5 million crypto phishing attacks in 2022, representing a 40% YoY increase compared to 2021. The company only detected approximately 3.5 million attacks in 2021.
The exploit’s severity highlights the importance of securing digital assets in the metaverse and the crypto sector. With the crypto sector’s rising popularity, criminals are finding new ways to exploit vulnerabilities in security protocols. Therefore, it’s essential for crypto users to prioritize security measures such as using hardware wallets and splitting assets across multiple accounts.
It is a timely reminder for investors to exercise caution when investing in the crypto space. Investors should prioritize security over convenience and take proactive steps to safeguard their assets. As the crypto sector continues to grow, it’s vital for investors to stay informed and vigilant to ensure their investments remain secure.