The Starcatchers NFT project sold NFTs which did not immediately show the image associated with them, but would instead be revealed at a later date. An observant collector noticed that several of the NFTs in the project sold for considerably higher than others. Following the reveal, it turned out that these were the rarest NFTs in the project. One of the NFTs (#1755, pictured) has been described as the “project mascot”, and later sold back to the Starcatchers team for 30 ETH ($83,400).It turned out that “Beutrec”, a co-founder and the primary artist behind the collection, had used his access to the project metadata to identify and buy the rarest NFTs in the collection. Although he attempted to use distinct wallets to perform the transactions, they were trivially linked back to him. He made around 50 ETH ($140,000) in profit from flipping the NFTs he bought with insider knowledge. After his actions were revealed in April 2022, Beutrec’s new NFT project, Boki, announced that Beutrec would no longer be a part of their team.

Total loss estimated at $140,000.