Home NFT Yet another hack hits NFT marketplace OpenSea

Yet another hack hits NFT marketplace OpenSea

by Melai Briones

OpenSea, one of the largest nonfungible token (NFT) marketplaces, has once again fallen victim to a hacking incident. This comes after two previous attacks, the most recent one occurring in June 2022 when a third-party contractor gained access to users’ and newsletter subscribers’ emails and shared them with an unauthorized party. In an earlier attack in February 2022, hundreds of NFTs were stolen from 32 users through a phishing attack.

In response to the latest breach, OpenSea acknowledged the incident on Twitter, stating that their application programming interface (API) keys may have been compromised. The company advised users to replace their existing keys with new ones, which have been set to expire automatically on October 2. However, OpenSea did not provide any further details about the breach.

Security experts have criticized OpenSea’s design, stating that if the data repository is accessible and the keys are compromised, it creates a perfect storm for malicious third parties to acquire the data. They emphasize the importance of regularly rotating these keys to mitigate potential risks.

Interestingly, the breach at OpenSea coincided with an attack on Nansen, a crypto analytics vendor. Nansen also disclosed a breach on its corporate account, recommending users to change their passwords. Although both breaches occurred around the same time, there has been no official announcement linking the two incidents.

The rise in crypto-related attacks can be attributed, in part, to the compromises on LastPass US LP master vault passwords that occurred in late 2022. Security blogger Brian Krebs has been monitoring this breach and reported that over $35 million worth of crypto assets from 150 users were stolen as a result. Private keys to crypto accounts were obtained by cracking LastPass vault passwords.

OpenSea, once a market leader in the early days of NFTs, has seen its market share decrease to about a third of all NFT trading volume. The repeated breaches have raised concerns about the platform’s security measures and its ability to protect user data and assets.

As the popularity of NFTs continues to grow, it is crucial for marketplaces like OpenSea to prioritize security and implement robust measures to safeguard user information and assets. Users should also remain vigilant and take necessary precautions to protect their accounts, such as enabling two-factor authentication and regularly updating their passwords.

In a rapidly evolving digital landscape, the importance of cybersecurity cannot be overstated. Companies must stay proactive in their approaches to security and adopt best practices to prevent breaches and protect their users’ valuable assets.

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