Fake NFT Project Hack? CTO Vanishes After Allegedly Stealing 94 SOL
April 03 2024 - 9:00PM
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A new rug pull alert sounded on Tuesday after crypto detective
ZachXBT unveiled on-chain details of an alleged hack suffered by an
NFT project last month. The project’s CTO announced that a response
was in the works but ultimately vanished as criticism grew. Related
Reading: Trezor X Account Hacked: How Much Was Taken In The Fake
Crypto Presale? Nuddies NFT, A Hack Or Rug Pull? On-chain sleuth
ZachXBT revealed the alleged misuse of funds by the CTO of NFT
project Nuddies NFT. In a now-deleted post, its CTO Kyle
explained that the project was “derugged from its previous founder”
and built differently from other NFT projects. A short
investigation into how @kyledegods faked a hack and stole SOL from
his project @NuddiesNFT before spending it on NFTs and lying to
holders about how devastated he was about the incident. On March 3,
2024 Kyle made a post in his Discord server claiming his wallets
had… pic.twitter.com/4ne6dtVyA5 — ZachXBT (@zachxbt) April 2, 2024
According to the crypto detective, Kyle faked a hack that seemingly
stole the project’s funds. On March 3, the alleged culprit posted
on the Nuddies NFT Discord server, informing us of the hack. The
post affirmed that Kyle’s Mac was hacked despite “not clicking in
any malicious link.” The CTO concluded that a “zombie process” was
on his computer for an undetermined period. This “mini-program”
gave control of the computer to “the hacker.” Through the
TeamViewer app the attacker gained access to the project and Kyle’s
wallets. The post further explained that 90 SOL, approximately
$17,000 at today’s price, were taken from the Nuddies NFT creator
wallet. Moreover, the hacker allegedly took control of Kyle’s
Discord and stole 150 SOL, worth around $28,300, from his wallets.
At the time, he claimed to be “mentally destroyed” by the loss of
the project’s treasury money. SOL is trading at $188.43 in the
3-day chart. Source: SOLUSDT on Tradingview.com Nonetheless, the
on-chain data compiled by ZachXBT tells a different story. Per the
crypto detective’s post, the CTO allegedly lied to the holders and
stole the 94 SOL, worth $12,000, when the incident occurred. The
post reveals that the funds were transferred during that day from
the Nuddies Royalty Wallet to an exchange deposit at 8:20 UTC. The
on-chain investigator claims that a destination transaction was
found using time analysis. The transaction to one of Kyle’s wallets
accounted for 3.42 ETH, around $11,700, at 8:21 UTC. The ETH was
seemingly used to buy two NFTs: DeGods 2921 and y00t 10991. The
DeGod NFT was used as the CTO’s profile picture on X until
yesterday. CTO Answers The Accusations, Then Vanishes The
accusations didn’t go unnoticed by the suspect, who posted on his X
account that he was “preparing the answer” with a wink face emoji.
After changing his profile picture, Kyle answered some users’
questions about his credibility, to which he replied that his
“conscience is clear.” Now-deleted post from Nuddies' CTO Kyle.
Source: X In the early hours of Wednesday, Nuddies NFT account
shared a now-deleted post informing that the creator wallet was
“refilled with 12k USD.” In the post, Kyle reassured that his
previous claims of intending to refill the wallet were authentic.
The CTO also claimed he was “waiting for his $W airdrop” to fulfill
his promise instead of selling his DeAsset. Additionally, he
“stepped out” of the project after giving the access keys to two
community members. Recovered excerpt from the deleted Nuddies NFT
post. Source: X However, the story doesn’t end there. Kyle and
Nuddies NFT’s account were deleted a couple of hours after the
post. The Nuddies website seems not to be working, as reported by
an X user. The project’s future is unsure as one of the community
members to whom Kyle gave the access keys was unaware of the
situation. Juiceddd, an NFT artist, is one of the two people in
charge of the project. Related Reading: Arbitrum Beats Ethereum and
Solana With 119% Surge In NFT Sales, NFT Resurgence On The Horizon?
The artist explained that he was responsible for redrawing the
entire Nuddies collection while adding “70+ new traits.” Moreover,
Juiceddd stated that he “woke up this morning to being the owner of
everything.” The artist is contemplating giving his perspective on
the incident as he considers that it is generally the artist who
“gets fucked” in these situations. Featured Image from
Unsplash.com, Chart from TradingView.com
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