Cryptocurrency [loss] $117,000

Tweet thread by zachxbt

2023-05-30 [vendor] Hopeexist1 NFT [chain] ethereum
Primary Source ↗
Financial Loss $117,000 (117,000 USD)
Blockchain(s) Ethereum

Incident Details

A person claiming to be battling cancer created a “charity NFT project” ostensibly to help with her treatment. She convinced some crypto influencers to promote the project, including Andrew Wang, a popular Twitter account with nearly 200,000 followers. Wang tweeted, “I’ll put my rep on the line to say this is for real amidst all the scams in our space”. He claimed to have spoken with the NFT project creator’s art teacher, writing: “he says she’s the best student he’s ever had, that her talent is too precious, that she must survive.“Several hours later, the project creator deleted her Twitter account, and crypto sleuth zachxbt unearthed evidence that the pixel art she had been selling as NFTs had been stolen from various others. Altogether, the “Pixel Penguins” NFT project she promoted raised around 63.5 ETH (~$117,000).Wang later apologized for promoting the scam, claiming that he had tried to do due diligence but had been in contact with her for over a year, and had spoken on the phone with someone claiming to be her art teacher. However, zachxbt wrote, “Seems some people called it out last year. Not sure how much he actually ‘verified’”.

Total loss estimated at $117,000.

Technical Details

Initial Attack Vector
On-chain theft (attributed by zachxbt)
Vendor / Product
Hopeexist1 NFT

Timeline

  1. 2023-05-30 Breach occurred
  2. 2023-05-30 Publicly disclosed