OpenSea compensates users affected by the exploits…Details here

OpenSea compensates users affected by the exploits…Details here

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Answer OpenSea compensates users affected by the exploits…Details here

In light of the growing criticism and complaints from the crypto community towards the largest NFT buying and selling platform.

OpenSea has decided to compensate the affected users in the amount of about $ 1.8 million.

On January 24, 2022, some OpenSea users saw their valuable NFTs being sold cheaply by hackers who exploited a loophole in OpenSea’s listing process to buy that NFT at around 98% off and then resell it for much higher prices.

Exploiting the “OpenSea” error:

According to a report issued by the security analytics company “EllipticalThe “OpenSea” exploit was the result of a flaw in how the platform handles the NFT insertion process.

Read:The value of closed assets in “ShibaSwap” of “Shiba Inu” is more than 1.5 billion dollars

It is worth noting that the “OpenSea” platform is built on the Ethereum blockchain, which is known for its high gas fees.

So to reduce the fees spent on transactions, OpenSea handles most of the jobs outside the blockchain until those transactions are sent to the blockchain for settlement.

To list an asset, the NFT sellers on the platform will have to sign off-network statements to confirm how much they want to sell the NFT for.

The issue arose in the OpenSea platform when sellers decided to send a message to the blockchain to cancel the initial listing.

To avoid paying the gas fee, sellers simply transfer the NFT to another wallet, making the initial offer invalid because the NFT is no longer in OpenSea.

Things get even more complicated when sellers transfer assets back to their OpenSea wallets.

Because the initial listing has not been cleared from the blockchain, anyone can buy an NFT at the initial price, which is exactly what the perpetrators did.

They allegedly discovered this design flaw in the OpenSea system and carried out their attack using a bot to scan the network for NFTs with low pending orders and buy them.

Read:Three Arrows Capital liquidators seek subpoenas for company founders

Security firm Elliptic revealed that it has identified at least five attackers involved in the exploit, including user jpegdegenlove who made at least 340 ether worth over $800,000 at current prices from the exploit.

OpenSea corrects its course:

After the exploit, OpenSea launched a new listing method on the platform, which allows users to effectively review both active and inactive listings and listings and a one-click option to cancel inactive listings.

OpenSea also offered compensation to those affected by the vulnerability, and according to Bloomberg, the compensation amounted to $1.8 million.

Read also:

Asian Company Uses Blockchain Technology to Prevent Fraud in COVID-19 Vaccines

Cryptocurrency exchange BitMEX launches its BMEX White Paper

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