A SIM swap attack has resulted in the theft of over $765,000 in non-fungible tokens (NFTs) from the Gutter Cat Gang NFT project. The incident, which involved fake Gutter Cat Gang airdrop scams, was reported by members of the NFT community on July 7.
Official Twitter account hacked
Gutter Cat Gang co-founder, Gutter Mitch, promptly issued a warning via Twitter. Gutter Ric, the other co-founder of the project, also saw his account hacked in the security breach.
Using the co-founders’ Twitter accounts, the bad actors shared links to counterfeit limited edition Gutter Cat Gang NFT sneaker airdrops. Unsuspecting followers, enticed by the promise of new NFTs, found their wallets drained upon clicking the provided links.
The hackers took additional steps to ensure the authenticity of the links, including branding and imagery from Gutter Cat Gang’s recent “phygital” sneaker drop. This event was a partnership with sportswear manufacturer Puma and NBA/Charlotte Hornets player LaMelo Ball.
ZachXBT lends a hand
Blockchain investigator ZachXBT, who recently made headlines after one of his investigations led to a class-action lawsuit in Canada, indicated that the project was targeted through a SIM swap attack. He openly criticized the team’s cybersecurity measures on Twitter.
ZachXBT, in a separate conversation thread, pointed out two victims of the attack. One unfortunate individual saw a Bored Ape Yacht Club NFT, currently worth $65,913, disappear from their possession. In a more drastic case, another victim lost a significant collection of NFTs, with a total value reaching an overwhelming $700,000.
Floor price remains strong
As the situation unfolded, Gutter Cat Gang co-founder Gutter Dan provided an update. He stated working with Twitter to regain access to the compromised accounts. Additionally, he expressed sympathy for the victims and committed to a thorough investigation of the incident.
However, despite the security incident, the current floor price for the NFTs stands at 0.5 Ether, a significant 615% increase from the initial minting cost, according to NFT Price Floor.