{"id":419698,"date":"2022-03-22T08:54:44","date_gmt":"2022-03-22T05:54:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defiance-capital-founder-loses-1-6m-in-hot-wallet-hack\/"},"modified":"2022-03-22T08:54:44","modified_gmt":"2022-03-22T05:54:44","slug":"defiance-capital-founder-loses-1-6m-in-hot-wallet-hack","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defiance-capital-founder-loses-1-6m-in-hot-wallet-hack\/","title":{"rendered":"# DeFiance Capital founder loses $1.6M in hot wallet hack"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26e11ea8504\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26e11ea8504\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defiance-capital-founder-loses-1-6m-in-hot-wallet-hack\/#%E2%80%9D_DeFiance_Capital_founder_loses_16M_in_hot_wallet_hack_%E2%80%9C\" >&#8221; DeFiance Capital founder loses $1.6M in hot wallet hack &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_DeFiance_Capital_founder_loses_16M_in_hot_wallet_hack_%E2%80%9C\"><\/span>&#8221; DeFiance Capital founder loses $1.6M in hot wallet hack &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvZTJlOTIyMmUtNzA4Yi00ZjY2LWI5YTctOTA0ODQzOWMzMTM1LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Founder of major crypto investment firm DeFiance Capital, \u201cArthur_0x\u201d, has suffered a hack on one of his hot wallets resulting in the loss of more than $1.6 million in nonfungible tokens (NFTs) and crypto.<\/p>\n<p>In a tremendous show of support, the crypto community has come to his aid to help retrieve the stolen items as he asked people to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Arthur_0x\/status\/1506109296701890563\">blacklist<\/a> the hacker\u2019s wallet. Several individuals on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> have attempted to determine exactly how the hack occurred and where the hacker gained access to his wallets.<\/p>\n<p>NFT community member \u201cCirrus\u201d went as far as buying two of the stolen Azuki NFTs and deciding to return them to Arthur at cost. Cirrus told Cointelegraph today that he:<\/p>\n<blockquote><p>\u201cfound out they were hacked, and instead of selling them for profit like the other folks who got some of his, decided I\u2019d sell them back to him at cost to help him out.\u201d<\/p><\/blockquote>\n<p>Cirrus added that this \u201cisn\u2019t the first time\u201d this has h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened to him. He said, \u201cI could easily go sell them for 6-8 ETH profit, but it just isn\u2019t right.\u201d His profile states that he has been a victim of rug pulls three times before, which likely guided his sympathies for his fellow victim.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Yo <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Arthur_0x?ref_src=twsrc%5Etfw\">@Arthur_0x<\/a> two of my bids got accepted on your hacked Azukis. Willing to get them back to you at cost. DM me <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/cBIX9QNLNu\">pic.twitter.com\/cBIX9QNLNu<\/a><\/p>\n<p>\u2014 Cirrus (@CirrusNFT) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CirrusNFT\/status\/1506091668453306370?ref_src=twsrc%5Etfw\">March 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A rug pull is when a crypto or NFT project suddenly closes down and the value of their token or NFT plummets without prior warning. In most cases, rug pulls are confirmations of a scam.<\/p>\n<p>In total, Arthur appears to have lost 78 different NFTs from five collections, mostly Azukis. He also lost 68 Wrapped Ether (WETH), 4,349 Staked DYDX (stkDYDX), and 1,578 LooksRare (LOOKS) tokens. The hacker began moving assets at about 12:30 am UTC, then promptly put all the NFTs up for bid on the OpenSea NFT marketplace. As of the time of writing, the hacker\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/etherscan.io\/address\/0xe47e8cd58c8e95f765e642d7dcb898f622cefa83\">wallet<\/a> held 545 ETH worth about $1.6 million. <\/p>\n<p>This hack highlights the importance of operational security when dealing with the self-custody of crypto assets because even people in the highest echelons of the industry can be attacked. In Arthur\u2019s case, he is baffled by how this happened to him as he wrote in a tweet \u201cHot wallet on mobile phone is indeed not safe enough.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Was pretty careful and stuck with only using hardware wallet on PC until I start trading NFT more regularly. <\/p>\n<p>Hot wallet on mobile phone is indeed not safe enough<\/p>\n<p>\u2014 Arthur \u26e9\ufe0f (@Arthur_0x) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Arthur_0x\/status\/1506096947576205313?ref_src=twsrc%5Etfw\">March 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Had Arthur used a hardware wallet, otherwise known as a cold wallet, he may not have been protected from this attack. Unlike a hot wallet, a hardware wallet is not always connected to the network. It also keeps one\u2019s private key and seed phrase safe from intrusion. However, Arthur <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Arthur_0x\/status\/1506110325640228866\">believes<\/a> the security breach happened due to a transaction he made on-chain which would also have compromised a hardware wallet.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>NeoNexus founder pulls the plug on popular Metaverse NFT project<\/em><\/strong><\/p>\n<p>NFT and crypto scams are always a danger, so investors should take the highest security precautions with their assets. There are even serial scammers who design projects to take advantage of the NFT community and pull the rug then move on to the next scam. As Cirrus pointed out:<\/p>\n<blockquote><p>\u201cThis is a gold rush for hackers and they\u2019re doing everything they can to come up with new ways to take advantage.\u201d<\/p><\/blockquote>\n<p>In light of the frustration and irritation at the hack, Arthur had stern words for the party who stole his assets, stating in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Arthur_0x\/status\/1506102619164479489\">tweet<\/a>, \u201cThe only thing I can say to the hacker is: you mess with the wrong person.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"nifty_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defiance-capital-founder-loses-1-6m-in-hot-wallet-hack\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; DeFiance Capital founder loses $1.6M in hot wallet hack &#8220; Founder of major crypto investment firm DeFiance Capital, \u201cArthur_0x\u201d, has suffered a hack on one of his hot wallets resulting in the loss of more than $1.6 million in nonfungible tokens (NFTs) and crypto. In a tremendous show of support, the crypto community has&#8230;<\/p>\n","protected":false},"author":1,"featured_media":419699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvZTJlOTIyMmUtNzA4Yi00ZjY2LWI5YTctOTA0ODQzOWMzMTM1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75190,89871,95118,70944],"class_list":["post-419698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-hardware-wallet","tag-hot-wallet","tag-nft","tag-hackers"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/419698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=419698"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/419698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/419699"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=419698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=419698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=419698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}