MetaMask security analyst Harry Denley first alerted users of the scheme, which used two phishing domain links for malicious campaigns targeting Beeple’s more than 670,000 followers.
$430,000 Stolen Via Two Phishing Links
Cybercrooks capitalized on the NFT artist’s recent digital art collaboration with luxury fashion juggernaut Louis Vuitton by creating a phishing link disguised as a legitimate raffle on Beeple’s Twitter account. Winkelmann had crafted 30 NFTs for Louis Vuitton’s “Louis The Game” mobile game, which were meant to be rewarded to players. Scammers saw the opportunity and posted a fake raffle entry costing 1 ETH per person on Beeple’s hijacked Twitter account. The money would allegedly be refunded if the user did not win the raffle. “Been working on this with LV for a long time behind the scenes. 1000 total unique pieces,” the scammers tweeted via Beeple’s account. “Official Raffle Below. 1 ETH = 1 Raffle Entry.” Once a follower clicked the link, they were taken to a fraudulent domain designed to siphon cryptocurrency from users’ wallets. According to Denley, the phishing links lead to a “721” contract with a “mint(),” function — which is designed to immediately withdraw funds. Soon after this was posted, Denley and several of Beeple’s followers reacted by warning others that this was an ATO (Account Take Over). “Beeple’s Twitter account has been compromised (ATO) to post a phishing website to steal funds,” Denley tweeted. The Louis Vuitton scam resulted in the theft of about $72,000 in ETH.
Second phishing link nets $365,000
While the first link scooped up ETH coin-by-coin, a second more sophisticated phishing link was tweeted that prompted users to send ETH to an external account. While the details of the second link aren’t all known, the tweet claimed to be selling 200 unique, limited edition NFTs from Beeple’s “Spring/Summer Collection 2021.” According to Denley, this scheme targeted users with the “setApprovalForAll(),” function via a malicious Discord server, netting scammers about $365,000. The “setApprovalForAll()” function is especially dangerous because if a user is tricked into signing it, it can allow anyone to control NFT transfers. Scammers then sold stolen NFTs on the OpenSea platform and deposited stolen ETH into a crypto mixer in an attempt to launder the gains.
Beeple Regained Control
Security researchers are still investigating the full extent of the case and there are no further details present about how exactly Winkelmann’s account was hijacked. “ugh we’ll that was a fun way to wake up,” Winkelmann tweeted once he gained back control of his account. “Twitter was hacked but we have control now.” Beeple also reminded users to be wary of online crooks. “Stay safe out there, anything too good to be true IS A [expletive] SCAM,” Beeple tweeted. One of Beeple’s followers known as Zeneca.eth — founder of NFT and Web3 space “@ZenAcademy” — underlined the importance of not clicking on links or connecting a wallet to a website without verifying through multiple sources first. In a response to Zeneca, the founder of internet company “@unmetaverse” MILK disclosed five tips on how to avoid NFT and cryptocurrency scams, such as closing DMs properly, not clicking on public links, and avoiding the use of hot wallets.
Followers Outraged
Several of Beeple’s followers fell victim to the scam, and some are placing the blame on Beeple himself. “Ok and now what? How you compensate your followers man? I Lost a NFT on your scammed Twitter page that cost 5 ETH floor,” user @DrZundapp_ wrote, adding that he might take Beeple to court. Beeple did not respond to the scrutiny directly, but thanked the CEO of Vayner Media Gary Vaynerchuk for helping him regain control of his account. Later in the day, Beeple posted an NFT entitled GIFT GOAT to all of his followers, possibly a way of showing appreciation, user @cryptony8055 remarked.
About “Beeple”
Mike Winkelmann is considered to be a trailblazer in the NFT realm. In 2021, he sold one of his digital artworks to Christie’s — one of the world’s most renowned auction houses — for $69.3 million. A milestone in the sale of digital art, the NFT is a unique digital latticework comprising 5,000 digital images that took Winkelmann 13 years to craft. The artwork now heralds groundbreaking opportunities for the London-based auction house and has effectively immortalized the NFT sector. Socially engineered scams can be a nightmare, and this isn’t the first time hackers have used Twitter to steal cryptocurrency. To protect your assets and avoid the ever-growing threat of digital theft, make sure to check out our guides on cryptocurrency and NFT scams.
