Bad actors exploit NFT Watchdog after collecting Mint
The NFT space remains one of the growing sectors for digital assets. More people and businesses are taking advantage of the incredible opportunities available for brand advertising and awareness via digital assets. But with the increased attention on NFTs comes the presence of bad actors in the sector.
There have been regulations for NFT collections and other related businesses. The aim is to control the business of operations and marketplaces. Regulatory rules also help to avoid fraud and exploitation of NFT collections. But criminals now go after regulatory watchdogs and auditors in their operations.
The hunter becomes the hunted
A recent exploitation of an NFT collection depicts the irony of the hunter becoming the hunted. Rug Pull Finder (RPF) fell victim to an exploit after minting a collection of non-fungible tokens.
RPF is a watchdog in the NFT space that investigates reported fraud and scams on various platforms on request. In addition, it maintains up-to-date reporting of the process, and informs the community through Twitter posts.
RPT has recently created an NFT collection labeled “Bad Guys”. The new development is meant to depict NFT fraudsters at different levels in the sector. The non-fungible token was also supposed to be whitelisted for its next upcoming NFT release during the fall period.
The RPT team went for a limited coin offering with only one per wallet. This move was suitable for NFT acting as a whitelist.
However, some exploiters compromised the minting process of the non-fungible tokens. The RPF planned to mint only 1,221 NFTs for the collection. Instead, the bad actors obtained more than 450 NFTs through card ordering.
The RPF development team has blamed their mistake over the recent exploitation of the minted non-fungible tokens. According to them, they failed to involve an independent audit team that could assess and determine the functionality of their work. The team reported a bug in the minted whitelist as non-fungible tokens where the exploiters moved in to perform their actions.
Develop team plans for recovery of exploited NFTs
The RPF has also initiated one recovery move for the lost non-fungible tokens. The team contacted the exploiters, who agreed to some conditions. As a result, the bad actors will return approximately 366 of the 450 leveraged non-fungible tokens. Also, the RPF teams will pay 2.5 ETH as a repurchase cost for the 366 tokens.
On the part of the RPF community, they acknowledged the openness and swift actions of the RPF to resolve the issue. But the irony of an auditor not following the basic rules of an audit for minutes could not be avoided.
As soon as the lost non-fungible tokens are recovered, the team will proceed with the main mining planned for the fall. So far, the recent exploit has created a terrible dent in the reputation of RPF as an audit firm.
Featured image from Pixabay, chart from TradingView.com
