Former SEC Official Warns of Epic-Scale NFT Theft
Date: 2023-12-19 Author: Dima Zakharov Categories: BUSINESS
Former SEC official John Reed Stark has declared the recent hacking attack on the NFT Trader trading platform as an epic tragedy of massive proportions. Stark, who served as a trusted member of the U.S. Securities and Exchange Commission, has issued a stern warning to investors, advising them to stay away from non-fungible collectible tokens (NFTs).
The stolen NFTs include those from high-profile collections like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), NFT World of Women, VeeFriends, and Art Blocks, resulting in millions of dollars in losses for investors. While the hacker has returned some tokens, Stark is concerned that rewarding criminal activity sets a dangerous precedent.
"I would have never imagined that JPEG files featuring silly-looking cartoon monkeys could be so easily intercepted. This is an epic tragedy. Call the action heroes Jack Reacher and Jack Bauer. Summon the comedian Jack Black; he could make a movie about this destructive adventure," Stark sarcastically wrote.
Stark believes that such attacks are becoming increasingly prevalent in the NFT ecosystem, characterizing the market as "completely fabricated." He notes that market manipulation involving NFTs is on the rise, receiving tacit approval. As a result, he advises individuals to steer clear of purchasing collectible tokens, labeling NFTs as fraudulent investments.
The former SEC veteran has previously expressed skepticism about investments involving bored monkeys in funny glasses and colorful hats. Stark also holds a negative view regarding USDT (Tether), as the U.S. lacks proper regulatory frameworks to oversee stablecoin issuers.
