Non Fungible token (NFT) marketplace Magic Eden pledged to refund all users who were duped into buying fake NFT due to a “massive exploit” on the platform.
The exploit resulted in the sale of 25 fraudulent NFTs across four collections including popular Solana-based collection ABC and y00ts.
After receiving reports of users being shown unverified NFTs as part of verified collections, on 4th Jan 2023, Magic Eden addressed this suspicious activity. As per Magic Eden, its newly deployed “activity indexer” failed to detect fake NFTs as a bug breached the platform.
The bug allowed fake NFTs to evade verification and get listed alongside genuine collections. Magic Eden users reported seeing strange images on the platform instead of NFTs, including pornographic images and stills from the TV series “The Big Bang Theory.”
On Jan 4, Magic Eden confirmed that the incident was an isolated UI issue. As per updates, the breach led to 25 fraudulent NFTs being sold across four collections in the past day. The marketplace is now looking to see if additional NFTs were affected.
As per Magic Eden, they are taking some measures to resolve this issue as soon as possible. To prevent such a mishap, Magic Eden has disabled entry points to eliminate new unverified NFTs and is now continuously monitoring the platform. It also advised users to perform a hard refresh to ensure no unverified listings appear in their browsers.
The marketplace confirmed that this issue is temporarily resolved while the team is still attempting to add more verification layers.