Blockchain analytics firm Elliptic has published a report on cybercrime activity regarding NFTs between July 2021 and July 2022. Losses between theft and fraud skyrocket. Money laundering with non-fungible tokens exacerbates this cryptographic scourge.
Over 4,500 NFTs stolen in July 2022.
Elliptic recently published a report titled “NFT and Financial Crime”. This report covers cryptocurrency criminal activity for one year, from July 2021 to July 2022. The average profit per scam is $300,000..
The survey results also show that thieves were particularly active in July, 4600 flights in total. just for this month. Earlier in May, the numbers were also very high. Near $24 million in NFTs were stolen.
And even, these figures do not reflect reality, since not all thefts are reported. On this occasion, Elliptic states, “The actual numbers are likely higher as thefts are not always publicly reported.”
According to the report, 23% of all NFTs stolen in 2022 came from hacked social media platforms like Discord. Cybercriminals also use phishing, malicious websites, or wallet exploits (as in the case of Solana) to achieve their goals.
CryptoPunk and Bored Ape Yacht Club Among the Most Wanted
According to Elliptic, unreported thefts are associated with low-cost NFTs. The most advertised are works from the most coveted collections in the ecosystem. Among the most targeted works are those from the collection Cryptopunk.
Cryptopunk #4324 was also stolen in November 2021 and was able to return $490,000 scammer. A month later, the attackers were able to steal 16 blue chip NFTs worth $2.1 million.
Rogues also target NFTs from the following collections: Bored Apes, Mutant Apes, Azuki, Otherside, and CloneX. NFTs Bored Ape Yacht Club are the most sought after cybercriminals. In a year, $43.6 million in NFTs from this collection were stolen.
In addition to stealing works, Since 2017, more than $8 million in illicit funds have been laundered using NFTs. according to Elliptic. The company also discusses counterfeiting and plagiarism, another major issue for NFT creators, owners, and wallets.