All you need to know about TreasureDAO’s exploit, stolen ‘Smol Brains’ NFTs

ambcrypto.com:

Non-Fungible Tokens (NFTs) have been quite the rage within the crypto-community of late. It gained traction in 2021, with even celebrities jumping onto the bandwagon. However, hackers saw this as an opportunity to exploit money-making digital platforms.

Different projects have fallen prey to various illicit activities, resulting in loss of funds. In the latest such incident, the biggest marketplace for NFTs on the Arbitrum blockchain – TreasureDAO – took a hit.

TreasureDAO, an NFT trading market built on Arbitrum, is the latest to fall victim to an exploit. In the said episode, hackers purchased NFTs listed on the market at zero fees.

Treasure DAO Co-founder John Patten confirmed the exploit in a tweet shared on 3 March,

“Treasure marketplace exploited. Please delist your items. We will cover the costs of the exploit, I will personally give up all of my Smols to repair this”

Soon after, TreasureDAO advised users to “delist everything” through messages posted on its Discord server. The representatives later informed the community that they had identified the issue.

Source: Wu Blockchain

On further investigation, a blockchain address shared by Twitter sleuths gave some insight into the details associated with the exploit.

17 Smol Brains, the most popular NFTs traded on Arbitrum, were stolen. Based on their listed prices on the TreasureDAO platform, the total value of these pieces came up to be 426,511.38 in MAGIC. However, the dollar value of the loot was around 1.4 million.

Understandably, this episode triggered alarm bells in the minds of many in the community.