Magic Eden to Reimburse Users Tricked into Buying Counterfeit NFTs
Magic Eden revealed that it will refund all the users who mistakenly bought unverified NFTs that showed up on the collection pages as a result of a recent breach.
In a statement, the Solana-based NFT marketplace said that a bug was deployed in an update to two of its features – Snappy Marketplace and Pro Trade tools. As a result, unverified NFTs were listed in these two tools.
- More technically, the newly deployed “activity indexer” failed to detect dupe NFTs. Instead, the bug allowed these tokens to evade verification and get listed alongside genuine collections.
- The development comes days after some Magic Eden users reported seeing strange images on the platform instead of the NFTs, including pornographic images and stills from the TV series “The Big Bang Theory.”
- On January 4th, however, the platform confirmed that its smart contract remains secure and added that the incident was an isolated UI issue.
- According to the update, the breach led to 25 fraudulent NFTs being sold across four collections in the past day. The marketplace is now looking if additional NFTs were affected.
“We have identified in the last 24 hours, the impact was contained to 25 unverified NFTs sold across 4 collections. These unverified NFTs showed up on the collection pages and transactions of unverified NFTs showed up in the activity tabs of the collections. The issue has been resolved as of this morning.”
- Counterfeit NFTs were also added to high-priced and prominent Solana-based collections ABC and y00ts.
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.