Hackers steal NFTs worth millions, from Apes to Art Blocks, in NFT Trader exploit
www.theblock.co
The major hack may be the worst attack to hit the NFT community in its history, with millions of dollars in potential losses.

The way I read the article, the “worth millions” is the sum of the ransom demand.

The funny part is that the exploit is in the “smart” contract, ya know the thing that the blockchain keeps secure by forbidding any updates or patches.

  • Starbuck@lemmy.worldEnglish
    14·
    11 months ago

    With crypto, you hold your own money

    You own a cryptographic key that a bunch of strangers have decided points to a spot on a ledger. These strangers have no legal connection to you, but things have been working out pretty well so far because your incentives align.

    As a bunch of Ledger owners are finding out, there are reasons for FDIC insurance of banks and that reason is so that people don’t have to be exposed to the dangers of storing all their money under their mattresses. Everyone recommends getting your crypto into a hardwallet, but what happens when a Ledger update bricks it? Or the company decides to backdoor it to escrow your “private” keys? And what can you do with those hardwallet funds besides HODL? Can you imagine if every time you wanted to spend part of your dirty fiat savings, you had to expose all of it to danger to do so?

    • shortwavesurferEnglish
      19·
      11 months ago

      As a bunch of Ledger owners are finding out, there are reasons for FDIC insurance of banks and that reason is so that people don’t have to be exposed to the dangers of storing all their money under their mattresses

      The FDIC is a scam. If JPMorgan or Wells Fargo failed they would not have enough to cover the loss. In fact they only hold ~2% of what they insure which would leave 98% of people with nothing. The only reason the FDIC is not bankrupt is because a cascade of banks have not failed all at once

      what happens when a Ledger update bricks it?

      The recent incident was a software supply chain attack. I am not aware of a bricked update but thats not saying much since i dont follow them closely

      the company decides to backdoor it to escrow your “private” keys?

      You lose all trust in them as you should and no longer use their products.

      what can you do with those hardwallet funds besides HODL?

      That is the point of a hardware wallet to hold your funds securely until you want to use them.

      expose all of it to danger to do so?

      Your hardware wallet acts as savings and use a hot wallet as a spend account with less money in it.