The attacker began swapping tokens out for other stablecoins shortly after the exploit, moving them into lending projects like Aave and laundering them through the Tornado Cash cryptocurrency mixer. There were early concerns that Aave itself was impacted by an exploit, but it was later clarified that Aave had simply been used to swap tokens involved in the Yearn exploit, and did not appear to itself be vulnerable.
Writer, journalist, and now web3 influencer Nicole Behnam helped pump Dogecoin founder Billy Marcus' new free-to-mint "Blocky Doge 3" NFT project, writing on Twitter, "No roadmap or utility? I'm in 👀" and talking it up on large Twitter spaces. A wallet belonging to her then received 250 NFTs from Marcus early on, then dumped around 220 of the NFTs on the market all at once, tanking the secondary market price while earning her around 20 ETH (~$38,000). At the moment, the NFTs are selling for an average of 0.031 ETH apiece (~$59).
After being found out, she wrote on Twitter that "There were mistakes made in a wallet that I controlled," but claimed that she had tried to make it up by returning the profits and buying up low-priced NFTs. "How the last 24 hours went down was not cool and I’m doing my best to rectify the situation," she wrote. "Listening, learning, moving forward." Shortly afterwards, she was removed from a "NFT100" list that had published only days prior by NFT Now, for what they described as violations of their ethics policy.
Now, the Ren team has announced that they have transferred all assets on the Ren Protocol "to the FTX Debtors' cold storage wallets for safeguarding".
The announcement mentioned "possible shutdowns of infrastructure and systems," possibly referring to Ren's plans — announced shortly after the FTX collapse — to "move on from Alameda" by launching "Ren 2.0" and sunsetting the 1.0 version. However, there has been little public evidence that Ren 2.0 has been progressing.
Although NFTs are often thought to be immutable, permanent links to their associated artwork, that's often not the case in practice. Many NFTs store metadata off-chain, or otherwise enable after-the-fact changes.
Goblintown is a collection of NFTs that launched in May 2022, quickly going viral and sparking a phenomenon of Twitter spaces where members spent hours making goblin noises into their microphones. Originally free to mint, the NFTs began selling for thousands of dollars on the secondary market. Now they trade for around 0.38 ETH (~$800) apiece.
In an apparent protest against the willingness of traders and marketplaces to stop honoring royalties, Truth Labs (the group behind Goblintown) changed the artwork for Goblintown and all of their NFT collections to an illustration of a dancing middle finger, with smaller middle fingers emerging from where its arms and genitals would be. The new image reads, "Fuck royalties. Fuck supporting building and creatives. Flipping is the heart of what makes Web3 special. Honor the flipper, fuck the community. Long live the slow rug." At the bottom, the image states: "Goblintown, Illuminati, The187, and Grumpls will be migrating to new contracts before Monday the 17th of April. All holders will be airdropped identical replacement NFTs." The new NFTs will enforce royalties on-chain, preventing marketplaces from allowing users to circumvent them.
Some embraced the new NFTs, while others accused Truth Labs of "rugging". Some people were horrified by the fact that NFTs that they owned could be changed after the fact without their consent, a fact they were not previously aware of. One owner wrote, "So your telling me I spent $1,000s of dollars and have 10 goblintowns for them all to now be dudes shaking their weiners?"
The announcement seemed to come as a relief to many in the Ingress community, with commenters remarking on the "scammy" nature of NFTs. Some wrote that they liked the idea, but that the web3 factor felt like it was "shoehorned" in. "I'll miss the Trading Post, please never bring NFTs or in fact any blockchain into future projects, or if you do at the very very least make it actually matter to the thing it's being put into, but still preferably just don't," said one.
- Trading Post shutdown announcement on Ingress discussion forums
GDAC halted deposits and withdrawals shortly after the attack, and stated that they had reported the exploit to South Korean law enforcement to investigate.
Terraport Finance launched on March 31, apparently having gone live without any sort of audit. On April 10, Terraport disclosed that an attacker had apparently managed to drain all project liquidity pools, making off with assets priced at around $2 million.
Today, Sifu himself was the victim of a theft as a bug in the SushiSwap decentralized exchange allowed a hacker to make off with around 1,800 ETH (more than $3.3 million) belonging to him. According to SushiSwap leader Jared Grey, around 300 ETH (~$557,000) of Sifu's funds were subsequently recovered.
Analysts have found that almost 200 addresses on the Ethereum network have approved the vulnerable contract, and around 2,000 addresses approved the vulnerable contract on Arbitrum, Polygon, and other chains. It's not yet clear how much was stolen in total. SushiSwap leader Grey urged users via Twitter to revoke approval for the vulnerable smart contract.
Bitcoin mining firm sues business partner after they allegedly lose $500,000 in Bitcoin to fraudster
The lawsuit also alleges that Gryphon has " dutifully collected its exorbitant Management Fee while shirking its duties under the MSA and delivering abhorrent management services" and "skimm[ed] off the top (i.e., st[ole]) from Sphere's assets".