DeFiance Capital founder lost more than $1.5 million in an attack on a hot wallet

DeFiance Capital founder, Arthur_0x just lost more than $1.5 million in an attack on a hot wallet. He has requested that the address be blacklisted and is investigating how the attack happened.

DeFiance Capital founder loses over $1.5 million in hot wallet attack

Founder of DeFiance investment fund has NFT wallet hacked
On Twitter, Arthur retweeted the warning status line with the following content:

This wallet address has been hacked for exposing an important private key or seed code, and Arthur_0x has requested to blacklist the address. In the tweets explaining, Arthur revealed before that he was very careful and often used hardware wallets. However, this incident occurred after Arthur gradually switched to using a hot wallet when he had a habit of NFT transactions. It is known that more than 20 NFTs were transferred from Arthur’s wallet to the hacker’s wallet. This NFT is worth about $1.5 million.

However, instead of sympathizing with Arthur, some Twitter users urged the DeFiance Capital founder to change his Twitter profile picture because he theoretically no longer owns these NFTs.

The cryptocurrency market is no stranger to bad actors exploiting smart contract bugs or performing hacks. Billions of dollars have been lost over the past few years. The DeFi and NFT markets are particularly lucrative targets for attackers who capture large sums of capital.

The consequences of such incidents can be enormous. Projects will want to ensure that smart contracts are kept private, as authorities could hold them accountable if investors are affected. Besides auditing smart contracts, crypto insurance projects are also working to protect investors.

In a related development, the DeFiance Capital fund was recently put on a warning list by the Monetary Authority of Singapore.

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