CryptoNovo Hacked and Lost $300,000 worth of NFTs

The promoter of an NFT was a victim of cybercrime and lost more than $300,000 worth of CryptoPunks. They have approved a rogue DApp to send their tokens, resulting in the funds being promptly stolen.

CryptoNovo, a nonfungible token (NFT) influencer, revealed on January 4 that he was the target of a hack and lost two CryptoPunks. He tweeted that he had been attacked and posted an OpenSea screenshot of two CryptoPunks being moved to some other address. 

The hacker promptly sold the two CryptoPunks, one for 70 Ethereum (valued at $88,434) and another for 199 Ethereum (worth $251,404). This means that CryptoNovo lost almost $300,000 in CryptoPunks during the hack.

I just got hacked!!!

Are you kidding me!?! pic.twitter.com/r1xS0mhD6P

— CryptoNovo (@CryptoNovo311) January 4, 2023

Meebits, CloneX, Mutant Ape Yacht Club, and Bored Ape Yacht Club NFTs are other non-fungible tokens allegedly taken from the site. #3706, CryptoNovo’s famous Punk, looks to have escaped the attack; however, the owner seems to have traded the item. Unlike the earlier NFTs, CryptoPunk #3706 was delivered to an entirely different account and resold for 75 ETH (worth $94,751). 

Really sorry this happened and I hope you're able to get the pieces back. If it's any help, it looks like you may have a signed a txn granting an allowance to https://t.co/8Lpr10A3sz pic.twitter.com/pNMt5xrN0F

— proper (@__proper) January 4, 2023

This account has received multiple products from Thenovoverse.eth, an ENS site that has previously received items from CryptoNovo’s official digital wallet. These facts suggest that the owner, not an assailant, sold the item.

On Twitter, CryptoNovo has more than 18,000 followers. He first became well-known in 2020 for donning a mask that makes him look like the green-beanie-wearing CryptoPunk.

While CryptoNovo stated the incident was a “cyber hack,” Twitter user Proper pointed out that fraud was more possible. CryptoNovo sent multiple token approvals to an unknown smart contract shortly after the green-beanie CryptoPunk was moved to a secure address. 

I have not asked anyone for anything. DO NOT send anything to anyone using my name and account number! The discord you see below is a fake account. A couple other CryptoPunks owners have scammers acting as them as well. pic.twitter.com/9YWcTLYAJd

— CryptoNovo (@CryptoNovo311) January 4, 2023

This deal then utilized the “transfer from” feature on several NFTs to remove them from the influencer’s wallet. This suggests that he was duped into approving a fraudulent DApp to relocate his coins. He also posted a picture of a Discord account claiming not to be him after nine hours of the attack.

CryptoPunks was among the earliest NFT collections of “generative virtual art.” It was introduced in June 2017. CryptoPunks now sell for an aggregate of more than $100,000.