Bad Actors Exploit NFT Watchdog After Collection Mint
The NFT space remains one of the growing sectors of digital assets. More people and businesses are tapping into the incredible opportunities available for brand advertisement and sensitization via digital assets. But with the increased attention to 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 activities of operations and marketplaces. Also, regulatory rules help to avoid fraud and exploits on NFT collections. But criminals now go after regulatory watchdogs and auditors in their activities.
The Hunter Becomes The Hunted
A recent exploit of an NFT collection depicts the irony of the hunter becoming the hunted. The Rug Pull Finder (RPF) fell victim to an exploit after minting an non-fungible tokens collection.
RPF is a watchdog in the NFT space that investigate reported scams and fraud on diverse platforms on request. In addition, it maintains an updated reporting of its process, intimating the community through Twitter posts.
RPT recently minted an NFT collection tagged ‘Bad Guys.’ Its new development is meant to portray NFT scammers at different levels in the sector. Also, the non-fungible token was supposed to be a whitelist for its next upcoming NFT drop during the autumn period.
The RPT team went for a limited minting offering only one per wallet. This move was suitable for the NFT serving as a whitelist.
However, some exploiters compromised the minting process of the non-fungible tokens. RPF planned on minting just 1,221 NFTs for its collection. Instead, the bad actors bagged more than 450 NFTs through short order.
The RPF developing team has owed up to its fault over the recent exploit of the minted non-fungible tokens. According to them, they failed to involve an independent auditing team that could assess and ascertain the functionalities of their work. The team reported a bug in the minted whitelist non-fungible tokens where the exploiters moved in to perpetrate their acts.
Developing Team Plans For Recovery Of Exploited NFTs
RPF has also initiated a recovery move for the lost non-fungible tokens. The team contacted the exploiters, who agreed to some terms. As a result, the bad actors will return about 366 out of the 450 exploited non-fungible tokens. Also, the RPF teams will pay 2.5ETH as a repurchasing cost for the 366 tokens.
On the part of the RPF community, they acknowledged the transparency and speedy actions of RPF in resolving the problem. But the irony that an auditor failed to comply with the basic rules in an audit for protocols could not be eluded.
Once the lost non-fungible tokens are recovered, the team will continue with the main minting scheduled for autumn. So far, the recent exploit has created a terrible dent in the reputation of RPF as an auditing firm.
Featured image from Pixabay, chart from TradingView.com