Magic Eden exposes a suspected security breach, and White Hat has moved about 3.83...

Liu said it was learned that 3,832 NFTs had been transferred from hundreds of wallets by White Hat agents in the suspected security breach at Magic Eden, an NFT marketplace. Yuga Labs CEO Michael Figge said that the vulnerability was discovered a few hours ago and is currently being handled by Quit0xQuit, vice president of blockchain at YugaLabs.

White Hat operational details and assets

Quit stated that the asset transfer is part of a white hat protection operation, and related NFTs are currently stored centrally at an address beginning with 0x71cF. The assets are in safe condition and will be returned to their original holders pending risk resolution. As of now, Magic Eden has not disclosed the cause of the vulnerability or the specific scope affected by it.

Background and impact on the industry

Magic Eden is one of the most prominent NFT trading markets in Solana's ecosystem. The suspected breach, involving hundreds of wallets and 3,832 NFTs, was highlighted by a recent security incident on the NFT market. Yuga Labs, as the parent company for top NFT projects such as Bored Ape Yacht Club, had its executives directly involved in the White Hat rescue, indicating that the event may have affected multiple blue chip NFT series.

White hat rescue is a common practice in the crypto industry to deal with security breaches: before an attacker exploits the vulnerability, security researchers first transfer affected assets to a secure address and return them to users for repair. This operation does not constitute an attack per se, but only if the transfer is transparent and verifiable.

Follow-up

No official announcement has yet been made by Magic Eden, but key information such as the cause of the vulnerability, the exact number of affected wallets and whether or not it involves user private keys leakage is still to be disclosed.