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A hack today cost Arthur Cheong, the founder of DeFi and the web3-focused venture capital firm DeFiance Capital, more than one million dollars in non-fungible tokens (NFTs).
An anonymous hacker began emptying NFTs from Cheong's Ethereum wallet about 12:50 a.m. UTC today. Cheong later acknowledged the attack in a series of remarks on Twitter.
The stolen goods, according to security firm PeckShield, comprised 17 Azuki, 5 CloneX, 2 Hedgies, and 33 Second Self — all popular NFT collections — which the hacker subsequently sold on marketplaces like OpenSea. Other tokens such as wrapped ether, Lido DAO Token, LooksRare, and DYDX were also transferred to a wallet controlled by the hacker.
Arthur Cheong, founder of DeFi and web3-focused venture capital firm DeFiance Capital, lost more than one million dollars worth of non-fungible tokens (NFTs) in a hack today.
Around 12:50am UTC today, an unknown hacker began draining NFTs from an Ethereum wallet owned by Cheong. Cheong himself later confirmed the hack with statements posted on Twitter.
Security firm PeckShield estimated that the stolen assets included 17 Azuki, 5 CloneX, 2 Hedgies, and 33 Second Self — all popular NFT collections — which the hacker then sold on marketplaces such as OpenSea. The hacker also transferred other tokens like wrapped ether, Lido DAO Token, LooksRare and DYDX to a wallet in their control.
The perpetrator’s wallet currently has 585 ETH ($1.7 million) in it, which can be linked back to Cheong’s wallet. According to Cheong, the amount could rise more because the hacker looks to be in the process of relocating funds.
The hacker used a’spear phishing’ email to install malware on his device, which extracted the seed phrase to his crypto wallet, according to the DeFiance founder. He also included a screenshot of the email in his post.
“Found out the likely root cause for the exploit; it’s a targeted social engineering attack. Received a spear-phishing email that really seems to be sent by one of our [portfolio companies] with content that seems like general industry-relevant content,” Cheong said.
This is not the first time hackers have successfully stolen valuable NFTs from a high-profile investor. In one incident in January 2022, a New York based NFT collector named Kramer said that someone had hacked their wallet and stolen $2.2 million worth of Bored Apes and Mutant Apes.