Hackers Target NFT Marketplace Nifty Gateway And Its Users

Hackers target NFT marketplace Nifty Gateway, as well as the platforms’ users as a few of them, reported that their entire collections were stolen. However, the platform said that the impact of the attack was limited as we can see more in our latest cryptocurrency news today.

Several Nifty Gateway users reported that their accounts were taken over and they had entire collections stolen. According to the NFT marketplace, the platform was not compromised and the attackers accessed accounts by using valid credentials. Twitter user Michael J. Miraflor for example wrote:

 “Someone stole my NFTs today on Nifty Gateway and purchased $10K++ worth of today’s drop without my knowledge. NFTs were then transferred to another account.”

Someone stole my NFTs today on @niftygateway and purchased $10K++ worth of today's drop without my knowledge. NFTs were then transferred to another account.

I encourage EVERYONE to please check their accounts ASAP.

Could use everyone's help here – please RT!

Full 🧵👇🏽

— Michael J. Miraflor (@michaelmiraflor) March 14, 2021

A spokesperson for Nifty Gateway stated that there was no indication of a compromise on the nifty Gateway platform while the NFT marketplace reported that it is communicating with a few of the users who appear to have been impacted by the actions. The users could have been targeted via their phones rather than the platform itself. As per Miraflor, he received an alert about selling something on the platform but by the time he tried to do something about it, his entire collection was emptied.  Miraflor explained that he received many fraud alerts from his credit card provider and wrote:

 “Since all transactions including Transfers are recorded, I know the exact 2 accounts my stolen NFTs were sent to, as well as who fraudulently purchased from today’s drop.”

As the hackers target NFT marketplaces, one of the accounts at Nifty Gateway held hundreds of NFTs while the other one was stealing and sold them on secondary markets. Miraflor also claimed that the platform didn’t confirm the theft but knew how the NFTs were sold. Another user wrote:

 “Someone hacked my Nifty Gateway account tonight and used my credit card attached to the account to buy like $20k worth of art… cool.”

A spokesperson for Nifty added:

“Our initial assessment indicates that the impact was limited, none of the impacted accounts had 2FA enabled, and access was obtained via valid account credentials.We have seen some reports that NFTs involved in these account takeovers were sold in transactions negotiated over Discord or Twitter.  We strongly encourage all Nifty Gateway customers to purchase their NFTs on the official Nifty Gateway marketplace.”