Someone Just Lost $240,000 to an NFT Scam

man shocked looking at his phone

The trader lost his NFTs to scammers after falling victim to a phishing scam on the Blur marketplace.

An unfortunate investor recently fell victim to a non-fungible token (NFT) scam, losing a whopping $240,000 on NFT marketplace Blur. 

NFTs are unique digital tokens representing ownership of particular items or content on the blockchain. The asset class has seen an increase in popularity over the past few years and the boom has attracted and drawn not only legitimate artists and investors but also a wave of scammers seeking to exploit the sector.  

According to  0xQuit, the scam involved six Bored Ape Yacht Club NFTs, 40 Beanz, and three Elementals, all listed for one wei each, which is effectively worthless.    

Considering the current floor prices for each asset, the total value amounts to approximately $239,676. Wei is the smallest unit of ether on the Ethereum blockchain.   

How It Happened

Usually, when a scammer deceives someone into listing an NFT for nearly nothing, automated bots swiftly purchase it by paying higher fees. This often results in the scammer missing out and getting nothing, with no option or possibility to reclaim their funds.

0xQuit noted that scammers are now in the game of tricking users into listing NFTs at high prices, with all proceeds going to the scammer’s address. 

To lure users, scammers establish a rule that cancels any transaction unless they are the buyers, effectively making the sale private.  

According to 0xQuit, the strategy ensures that only the scammer can complete the transaction, preventing others from intercepting the low-priced listings.

In addition, the scam involved tricking the victim into signing a transaction on a phishing website, often promoted through an impersonator account on X advertising a free mint or airdrop checker.   

The Rise in NFT Scams

NFT-related scams have become a persistent issue for both marketplaces and users since the surge in popularity of these assets in late 2020 and early 2021. The rise in NFT scams has called for stricter regulatory oversight and vigorous security measures in the crypto sector.  

In rare instances, this has prompted authorities to pursue those responsible for large thefts. For example, last month, three UK nationals were charged with orchestrating a $3 million scam in 2021 involving the “Evolved Apes” NFT collection.