SIM Swap Attack on Gutter Cat Gang NFT Project Results in $765,000 Worth of NFTs Stolen
On July 7, it was reported that over $765,000 worth of non-fungible tokens (NFTs) were stolen in a SIM swap attack targeting the Gutter Cat Gang NFT project. The breach came to light when members of the NFT community noticed suspicious activity around 8:00 pm UTC.
Gutter Mitch, co-founder of Gutter Cat Gang, issued a warning on Twitter, informing users that their account had been compromised and advising them not to interact with any links. Co-founder Gutter Ric also fell victim to the hackers.
The attackers exploited the compromised accounts to distribute links to fake limited edition Gutter Cat Gang NFT sneaker airdrops. When users clicked on these links, their hot wallets were drained of funds. The hackers incorporated recent Gutter Cat Gang branding and images from the project's sneaker drop collaboration with Puma and NBA/Charlotte Hornets star LaMelo Ball to lend credibility to their scheme.
Blockchain investigator ZachXBT suggested that the team had fallen prey to a SIM swap attack, raising concerns about their cybersecurity practices. He emphasized the need for a compensation plan for the victims, given the negligence of using SMS 2FA in light of the recent surge in SIM swap attacks.
ZachXBT highlighted two victims of the attack, one losing a Bored Ape Yacht Club NFT valued at $65,913, and another losing $700,000 worth of NFTs from various renowned collections.
Gutter Dan, another co-founder of Gutter Cat Gang, provided an update, stating that they were working with Twitter to regain control of the compromised accounts. He expressed sympathy for those affected and assured the community that they were taking the matter seriously, collaborating with law enforcement to investigate the hack and security breach.
As of now, the compromised accounts remain under the control of the attackers. Gutter Cat Gang, known for its 3,000 unique NFT cartoon cat avatars, has seen a substantial increase in value since its launch in mid-2021, with the current floor price for the NFTs standing at 0.5 Ether (ETH), equivalent to approximately $1,858, according to NFT Price Floor.
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