Bad guys have stolen over $100,000,000 worth of NFTs since last year: Crypto analytics firm
New data from a well-known crypto intelligence firm reveals that criminals have stolen over one hundred million dollars in non-fungible tokens (NFTs) since last year.
According to blockchain analytics firm Elliptic, more than $100 million in NFTs were reported stolen between July 2021 and July 2022, with July of this year being the highest month on record, with meaning NFT-related scams have not slowed down despite the latest crypto winter.
“More than $100 million worth of NFTs were publicly reported stolen through scams from July 2021 to July 2022, with perpetrators collecting $300,000 on average for every scam. July 2022 saw over 4,600 NFTs stolen – the highest month on record – suggesting that scams have yet to abate despite the crypto bear market. ”
Elliptic found that the recently banned crypto mixing service Tornado Cash was the main tool of choice for the bad guys as it was used in more than half of the NFT money laundering cases until it was released. prohibited for use in the United States.
“Tornado Cash, a US sanctioned mixer, is the source of $137.6 million in crypto assets processed by NFT markets and is the money launderer of choice for 52 % of NFT fraud amount prior to its heavy use by OFAC [Foreign Assets Office Control] in August 2022.
Its heavy use by threat actors interacting with NFT underscores the need further effective sanctions screening by NFT platforms. "
Tornado Cash was banned by the Treasury Department's OFAC earlier this month after it was deemed a national security threat due to its involvement in criminal activity.
Aug 25, 2022