Major Crypto Heist Strikes Flooring Protocol and NFT Trader, Millions in NFTs Stolen – Coinpedia Fintech News

The cryptocurrency world has been rocked by a sophisticated cyber heist targeting two major NFT platforms – Flooring Protocol and NFT Trader. The combined theft, occurring on December 16, resulted in the loss of NFTs valued at nearly $4.54 million, stirring serious concerns about the security of digital asset platforms.

The Flooring Protocol Breach:

The Flooring Protocol, known for its liquidity solutions in the NFT marketplace, suffered a significant breach with the theft of $1.54 million worth of NFTs, including prized collections like 36 Pudgy Penguins and 15 Bored Ape NFTs. The attack was traced to a vulnerability in the peripheral or multi-call smart contract.

In a rapid response, the Flooring Protocol developers implemented a fix within two hours of the attack, ensuring the main smart contract and assets in vaults and safeboxes remained unaffected. Despite this prompt action, the stolen NFTs were reportedly sold on the Blur platform, earning the hacker an amount between $1.5 million and $1.6 million, contingent on the fluctuating prices of Ethereum.

Market Impact and Community Response:

Simultaneously, NFT Trader, a peer-to-peer NFT platform, experienced a significant security breach. In this incident, almost $3 million worth of blue-chip NFTs were stolen. The hacker, after initially demanding a 10% bounty from the owners of the stolen NFTs, unexpectedly returned some of the items, including a World of Women NFT and several pieces from the Mutant Ape Yacht Club collection.

In the wake of these attacks, Flooring Protocol’s native token FLC experienced a 12% price drop in the last 24 hours. As of this writing, FLC is trading at $0.010 with a one-day trading volume of $640,489, according to data from CoinGecko.

The crypto community has voiced growing concerns over the security of NFT platforms following these incidents. The resilience of Flooring Protocol’s FLC token amid such large-scale hacks raises questions about the broader impact on investor confidence and the future of decentralized finance.

The recent security breaches at Flooring Protocol and NFT Trader highlight the vulnerabilities in the NFT marketplace. As the industry contends with these challenges, the focus is increasingly shifting towards enhancing security measures and restoring trust among investors and users in the digital asset space.

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