NFT Marketplace Closed Within 6 Hours of Launch in Rag Pull Scam

Rag pull scams have been on the rise in the crypto segment in the past few months. In one such case, the SudoRare NFT marketplace was shut down six hours after its launch after being duped of approximately $850,000. The Twitter handle of SudoRare has also been disabled. Apart from 519 Ether, USD Coin has also been stolen in this scam.

Security research firm PechShield reported that the stolen funds have been transferred to three different crypto wallets and 173 Ether tokens have been sent to each of these wallets. Not much is known about those who started SudoRare. However, PechShield has learned that one of these crypto wallets is registered with the crypto exchange Kraken. No information has been given by Kraken in this matter. Several people in the NFT community warned on Twitter about SudoRare being suspicious. A report by Chainalysis stated that over $7.7 billion was defrauded from investors in several cases of the Rag Pull scam last year. More than $2.8 billion worth of cryptocurrency has been stolen in such cases this year. Most of these scams happen in Decentralized Finance (DeFi).

Scammers can easily create new tokens on the blockchain once they have the technical know-how and get them listed on decentralized exchanges without a code audit. OpenSea, one of the major NFT marketplaces, has changed its policy to protect users from theft of digital collectibles. OpenSea has decided to take the help of police officers in all cases of theft.

Along with this, the firm has made it easy to resell and purchase stolen items after recovery. These changes have been made based on the feedback received from the NFT community. “We are making it easier for users who report a stolen item to resell or purchase an item upon recovery,” OpenSea said in a post on Twitter. The firm has acknowledged that users’ confidence in the firm has been weakened due to legal difficulties for their next buyers or holders in some cases of stolen NFTs.

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