In an alarming revelation, the Gutter Cat Gang, a distinguished NFT project, recently fell prey to a significant SIM swap attack. This well-coordinated assault resulted in the loss of nonfungible tokens (NFTs) valued at over $765,000.
Unveiling the Gutter Cat Gang Security Breach
The incident came to light at approximately 8 pm UTC on July 7 when the community members of the NFT world raised the alarm. The co-founder of Gutter Cat Gang, known as @GutterMitch, swiftly broadcasted a cautionary message via Twitter. “We are experiencing a security breach; avoid any interaction with links associated with our Twitter account,” he warned.
In addition to the primary Gutter Cat Gang account, @gutterric, another project co-founder, also fell victim to the intrusion.
Perpetrators’ Deceptive Strategy
The assailants strategically misused these hacked accounts to disseminate fake links that promised “limited edition” Gutter Cat Gang NFT sneaker airdrops. Unbeknownst to the victims, these links surreptitiously drained their hot wallets upon activation.
To enhance the legitimacy of these spurious links, the hackers cunningly incorporated recent Gutter Cat Gang branding and images from the project’s recent collaboration. This partnership involved a phygital sneaker drop, launched in association with Puma and the NBA/Charlotte Hornets star, LaMelo Ball.
The Aftermath and Repercussions
In the wake of the incident, ZachXBT, a renowned blockchain investigator, took to Twitter to question the cyber-security measures of the team. He speculated that the Gutter Cat Gang fell prey to a SIM swap attack. “The team must urgently consider a compensation plan for the victims, as it reflects gross negligence to have relied on SMS 2FA for your social media accounts amidst the rising instances of SIM swaps,” commented ZachXBT.
In a separate thread, ZachXBT exposed the extent of the damage, revealing two victims who had suffered substantial losses. One of the victims lost a Bored Ape Yacht Club NFT, valued at the current floor price of $65,913. The other suffered a staggering loss of $700,000 in NFTs spanning numerous blue-chip collections.
Gutter Cat Gang’s Response
Responding to the incident, @gutterdan_, another Gutter Cat Gang co-founder, revealed they worked closely with Twitter to recover control over the infiltrated accounts linked to Gutter. “We extend our deepest sympathies to everyone affected and wish to assure you that we are treating this issue with utmost severity. We are working in conjunction with law enforcement agencies to probe the hack and security breach thoroughly,” he added.
Established in mid-2021, Gutter Cat Gang comprises 3000 unique NFT cartoon cat avatars. This incident has underscored the pressing need for stringent security protocols in the digital domain, particularly for entities operating within the burgeoning NFT space.
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