Nearly 4,000 NFTs placed under whitehat protection during Magic Eden security incident
Nearly 4,000 NFTs were transferred from multiple wallets by a security researcher responding to a possible Magic Eden security issue, according to Yuga Labs confirming the tokens remain secure.
A security researcher operating as a whitehat transferred 3,832 non-fungible tokens from multiple user wallets on Friday in response to potential security concerns related to the NFT marketplace Magic Eden.
An NFT community participant operating under the handle Cirrus on X brought attention to the unusual activity on Friday, noting that a solitary wallet had relocated 3,832 NFTs originating from hundreds of different wallets. According to Cirrus, the transactions displayed characteristics of sales processed through Magic Eden, and he recommended that NFT owners revoke their permissions as a safety measure.
Not long after this observation, the pseudonymous vice president of blockchain at Yuga Labs, known as 0xQuit, confirmed the transfers represented a white-hat security operation. He indicated that the NFTs currently stored in the destination wallet remain secure and "will be returned once they are no longer at risk."
This Yuga Labs executive has a track record of participating in comparable NFT recovery initiatives. During June, 0xQuit assisted in the retrieval of 68 NFTs valued at more than $500,000 following a security breach affecting Flooring Protocol, with those digital assets subsequently held for eventual return to impacted users.
Michael Figge, serving as CEO of Yuga Labs, stated that a vulnerability had been identified several hours prior and indicated that the company would provide additional details in the near future.
Magic Eden has not issued any public statement confirming that its smart contracts were subject to exploitation.
Cointelegraph reached out to Magic Eden requesting comment, but had not received a response by publication.