NFT Marketplace Magic Eden Pledges to Refund Users Who Were Sold Fake NFTs in ‘Massive Exploit’
Non-fungible token (NFT) marketplace Magic Eden said that it would refund all users affected by the exploit that involved the sale of fake NFTs - passing them off as 'members' of verified collections.
On the morning of January 4 (PT time), the marketplace team saw "a handful" of reports saying that users were being shown unverified NFTs as part of verified collections on Magic Eden, said the announcement.
The incident affected popular collections such as ABC and y00ts. ABC creator HGE described this as 'a massive exploit' affecting high-value NFTs.
HGE called for the site to be paused, saying: "I know volume is important but limit the damage first. Make sure the exploit is stopped, like really make sure of it."
The team came out to state that,
"We have identified in the last 24 hours, the impact was contained to 25 unverified NFTs sold across 4 collections."
The unverified NFTs showed up on the collection pages, they explained, while transactions of unverified NFTs could be seen in the activity tabs of the collections.
That said, the announcement claimed that the issue is resolved, that the team is currently checking if any additional NFTs were affected, and that users will be compensated, stating:
"Magic Eden is safe for trading and we will refund all the users who mistakenly bought unverified NFTs specifically due to this issue."
Magic Eden also communicated with the users about the issue via their social media accounts.
Thank you to the community for bringing this issue to our attention & for your patience. We solved the root issue around 5 am PT today. We subsequently reminded users to hard refresh their browsers & added security measures to ensure unverified NFTs can no longer be bought on ME.
But per some, this wasn't
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