Bored ape avatar collector loses NFTs worth $567,000 in direct swap scam

Non-fungible-token (NFT) hacks are on the rise again, and this time it is a Bored Ape Yacht Club (BAYC) collector who has been scammed. A bored ape holder that goes by the name ‘s27’ lost bubble gum ape and matching mutants worth $567k after swapping their NFTs at an exchange named “Swap.Kiwi”. This platform allows for direct NFT swaps between collectors, at reduced transaction fees.

BAYC NFT is owned by famous celebrities, such as basketball icon Steph Curry, music artist Post Malone, and even American TV host Jimmy Fallon.

A Twitter account that goes by the name ‘quit’, which tracks all popular NFT ape avatars said that his Discord server is configured to track BAYC listings that are at least 5 per cent below their floor price in Ether. “The pings are rare, but when they happen it generally means one of two things: somebody is panic selling, or somebody is compromised. When I saw the notification for #1584, I instantly knew it was the latter,” said the user.

‘s27’ transferred this ape from his vault to another wallet, just to lose it shortly thereafter. The collector traded the NFT on swapkiwi, a trading site which is similar to NFTtrader or SudoSwap. These platforms enables trading of NFTs. “The collector initiated a trade to lose his apes, which is certainly not normal behavior,” noted the user. The crypto enthusiast decided to play with KiwiSwap and see how this could’ve happened.

“There’s nothing inherently wrong with KiwiSwap. The contract is safe and does what it’s supposed to. But there are fatal flaws with the UI/UX,” the user added.

The scammer added ‘verified’ checkmarks to knock-off NFTs exclusively to make them appear legitimate on swapkiwi.

This is not the first time a BAYC NFT collector has been scammed. Earlier in March, An NFT holder sold a BAYC NFT worth $350,000 for a meager $115. This either appears to be a hack or an honest mistake, but has costed the collector a fortune.

In December, someone sold a NFT worth Rs 2.27 crore for Rs 2.27 lakh. According to a report by CNET, the NFT sold for $3,000 was supposed to be listed for 75 Ethereum (ETH) about $300,000. However, the owner of the NFT, who goes by the username maxnaut, ended up with a typo error and entered a listing price of 0.75 ETH rather than 75 ETH.

In other news, Yuga Labs, creators behind the popular ape avatar collection announced stepping into the world of metaverse. This company’s metaverse project is named Otherside, which intends to connect its massively multiplayer role-playing game into the broader NFT universe.



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